eChoice sale confirmed

The financial group has been sold to a subsidiary of one major bank as details of the sale are finally released

eChoice sale confirmed



The voluntary administrators appointed to oversee the sale of eChoice and 13 subsidiary companies have announced the sale of the group's operating assets to Finconnect, a subsidiary of Commonwealth Bank of Australia (CBA).

The sale includes all assets including its intellectual property and platform and its digital home lending solutions. It does not include lender or broker agreements related to eChoice as these are held by entities outside of the eChoice parent company or the 13 subsidiaries.

"Our understanding is that the lender and broker agreements will not be affected by the sale and will continue to operate in the normal course," the administrators wrote.

Business is expected to continue as normal while the sale to CBA provides an opportunity for growth and investment, they added.

"Most employees will be offered employment with the purchaser. It will also offer suppliers the opportunity to continue to trade with the group in the future."

The administrators say they will continue to review the affairs of eChoice and will prepare a report for creditors next year which will provide details of the company's financial affairs, background and historical trading.

"At this stage, we are not in a position to advise in respect to these matters or provide any further details pertaining to the sale agreement. These are issues which will be properly considered in our report to creditors."

The report will be handed to creditors at a meeting to be held by 29 March next year.

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