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Latitude inks binding agreement to buy Humm’s consumer business
Latitude Group has inked an agreement to acquire Humm Group’s consumer business.
Latitude inks binding agreement to buy Humm’s consumer business
Latitude Group has inked an agreement to acquire Humm Group’s consumer business.
Humm Group confirmed on Friday (18 February) it has entered into a binding agreement with Latitude Group to sell hummgroup consumer finance (HCF), comprising its buy now, pay later (BNPL), instalment and credit card operations, to Latitude for $335 million.
The financial group would pay $35 million in cash and issue 150 million shares to acquire the unit.
“This is a transformational transaction for hummgroup that represents compelling value for shareholders,” said Humm chairman Christine Christian.
“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,” Ms Christian said.
After completing the sale of HCF and distributing the share and cash consideration to shareholders, Humm expects that it will have unrestricted cash, which will be first applied to the retirement of its perpetual note. The remainder of the cash, Humm confirmed, will either be allocated to investing in the growth of its commercial business or capital management initiatives.
“This is an attractive outcome for HUM shareholders,” Ms Christian said.
Humm confirmed it would retain ownership of its commercial business and stay listed on the Australian Securities Exchange.
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