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- Humm Group (HUM) makes a pitch to shareholders to support the sale of Humm Consumer Finance (HCF) to Latitude Group (LFS)
- Since February, the company has released a string of announcements trying to persuade shareholders to vote in favour of the sale in the upcoming general meeting to be held in a week
- Whilst majority of the board support the move, former Chairman Andrew Abercrombie has stated his opposition, with the belief it undervalues the company
- The board has reportedly been trying to source the potential for a better offer, but has received no alternatives
- Shares are trading 3.7 per cent lower today at 65 cents at 1:22 pm AEST
Humm Group (HUM) has made a pitch to shareholders to support the sale of Humm Consumer Finance (HCF) to Latitude Group (LFS).
Since February, the company has released a string of announcements trying to persuade shareholders to vote in favour of the sale in the upcoming general meeting to be held in a week.
Whilst majority of the board support the move, former Chairman Andrew Abercrombie has stated his opposition, with the belief it undervalues the company.
Meanwhile, CEO Rebecca James confirmed she will join Latitude if the HCF sale proceeds in order to lead the combined HCF and Latitude BNPL business.
Under the terms of the sale, HUM shareholders will receive about 0.3 Latitude shares and 7 cents in cash for every one Humm share owned.
This adds up to $35 million in cash and 150 million Latitude shares for a total value of $225 million.
The board has reportedly been trying to source the potential for a better offer, but has received no alternatives.
It said HCF preliminary financial results suggest the buy now pay later business has not been profitable in the first four months of this year.
The company has cited the increasingly competitive environment as the reason for its declining margins.
Independent Expert, Kroll Australia assessed the sale and believes it is in the best interest of shareholders.
Shares were trading 5.19 per cent lower today at 64 cents at 1:22 pm AEST.
