Humm Board Deems Credit Corp’s $0.77 Bid ‘Not Compelling’ as Key Shareholder Signals Opposition

Humm Group Limited ( (AU:HUM) ) has provided an update.

Humm Group’s Independent Board Committee has reiterated that Credit Corp Group’s non-binding indicative proposal to acquire 100% of Humm at $0.77 per share is not considered compelling, although it is sufficient to justify continuing engagement and granting due diligence access. The committee is awaiting an updated valuation from financial adviser Flagstaff, expected in early May, before forming any formal recommendation on the bid, and stresses that shareholders should not rely on its current preliminary view.

The outcome of the proposal is heavily influenced by major shareholder Andrew Abercrombie, whose vehicle TAG holds 29.4% of Humm and is unlikely to support the $0.77 scheme of arrangement, making it difficult to secure the required 75% shareholder approval. Credit Corp has flagged that, if the scheme fails, it may instead pursue an off-market takeover at $0.72 per share, but TAG has indicated it does not intend to accept such an offer based on current information, underscoring uncertainty over whether any transaction will eventuate.

The most recent analyst rating on (AU:HUM) stock is a Buy with a A$0.87 price target. To see the full list of analyst forecasts on Humm Group Limited stock, see the AU:HUM Stock Forecast page.

More about Humm Group Limited

Humm Group Limited is a diversified financial services company focused on instalment plans that help businesses and consumers finance larger purchases. It operates in Australia, New Zealand, Ireland, Canada and the United Kingdom, offering commercial lending, point-of-sale payment plans and a suite of branded credit cards in both Australia and New Zealand.

Average Trading Volume: 710,221

Technical Sentiment Signal: Hold

Current Market Cap: A$320.6M

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