ASX:AU1 · 1 February 2018

Update on acquisition of subsidiaries of ServTech

Document preview

ASX MARKET RELEASE 1 February 2018

UPDATE ON ACQUISITION OF SUBSIDIARIES OF SERVTECH GLOBAL HOLDINGS LTD

  • Extension of settlement date to 14 February 2018
  • $100,000 initial deposit of the consideration to be paid

The Agency Group Australia Limited (formerly “Ausnet Financial Services Limited”) (ASX: AU1) (Company or The Agency) refers to its ASX announcement of 14 December 2017 (entitled “Acquisition and Capital Raise”) detailing the key terms of its proposed acquisition of all of the shares of Sell Lease Property Pty Ltd (ACN 150 537 527), Value Finance Pty Ltd (ACN 605 296 115) and Complete Settlements Pty Ltd (ACN 604 615 367) (SVT Companies) – all of which are currently wholly-owned subsidiaries of ServTech Global Holdings Ltd (ASX: SVT) (ServTech).

Settlement of the acquisition was expected to occur on 1 February 2018. The Company and ServTech have agreed to extend the settlement date for the acquisition from 1 February 2018 to 14 February 2018 in order for all of the conditions precedent to the acquisition to be satisfied prior to settlement. ServTech has accepted a $100,000 initial deposit of the consideration from The Agency in lieu of granting this extension.

About The Agency Group Australia Ltd

The Agency Group Australia Ltd consists of a group of successful businesses which deliver finance broking, real estate services, settlement services, property management (2017), project marketing, insurance and financial planning initially to the Western Australian market with an aim to be rolled out nationally.

This model has been created to build the core asset being a loan book currently at ~$1.1 billion by cross referring clients between business units. The largest growing referral area has been built on a highly successful and disruptive real estate agency model named “The Agency”.

The agents have been referring ~60% of all sales for financing broking. The Agency is aiming to recruit ~100 sales representatives to “The Agency” in Western Australia that will eventually deliver over 1000 property transactions per year with the aim of converting into cross sales for mortgages, settlements and insurance. Each sales representative that joins The Agency not only adds sales activities but also on average bring in a database of ~2000 clients.

The Agency’s target is to have ~600 sales representatives nationally. The Company is also backed by Finsure Group, one of Australia’s fastest growing retail finance brokerages with over 1,200 brokers settling over $1 billion a month.

Corporate website: www.ausnetrealestateservices.com.au

Investors

The Agency Australia Ltd

Paul Niardone

T: +61 08 9204 7955

Media

Chapter One Advisors

David Tasker / Colin Jacoby

T: +61 433 112 936 / +61 439 980 359