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- Humm Group (HUM) enters a binding agreement with Latitude Group (LFS) to sell HUM Consumer Finance (HCF) for $335 million
- The transaction consists of both cash and shares and includes Humm’s buy now, pay later, instalment and credit card operations
- Humm will continue to own the Commercial business, flexicommercial, which will remain an ASX-listed company
- The transaction is subject to approval from shareholders, the Australian Foreign Investment Review Board and the New Zealand Overseas Investment Office
- Shares in Humm are up 5.81 per cent on the market and are trading at 91 cents
Humm Group (HUM) has entered a binding agreement with Latitude Group (LFS) to sell HUM Consumer Finance (HCF) for $335 million.
The consideration comprises 150 million Latitude shares and $35 million cash.
Humm and latitude first entered a non-binding heads of agreement in January 2022 for the sale of HCF.
This transaction includes Humm’s buy now, pay later (BNPL), instalment and credit card operations.
Humm believes the transaction will create the number one non-bank consumer lender in Australia and New Zealand, and the company believes HCF will be in a stronger position to accelerate the delivery of its strategy, pursue international growth and optimise value for shareholders.
Humm recommends that shareholders vote in favour of the transaction and it’s subject to an independent expert concluding that is in the best interests of shareholders.
In addition to shareholder approval, the transaction is subject to approval from the Australian Foreign Investment Review Board and the New Zealand Overseas Investment Office.
Humm will continue to own the commercial business, flexicommercial, which will remain an ASX-listed company.
“This is a transformational transaction for hummgroup that represents compelling value for shareholders,” Chairman Christine Christian said.
“It is proposed that HUM shareholders will receive the consideration for the sale of HCF, comprising shares in Latitude – which will provide HUM shareholders with the opportunity to participate in the growth benefits and synergies arising from the combination – and cash.”
Shares in Humm were up 5.81 per cent on the market and were trading at 91 cents 11:53 am AEDT.
