Credit Corp bid for Humm Group collapses

The news: Debt buyer Credit Corp’s acquisition interest in buy-now-pay-later operator Humm Group has collapsed with the two parties ending discussions after failing to meet a “mutually acceptable transaction” over the weekend.

The context: Following a period of due diligence, Credit Corp told the exchange “it informed Humm on the evening of Friday 19 June that its bid was materially reduced relative to its non-binding indicative offer” after raising “a number of matters which it was unable to gain comfort on”.

Credit Corp’s proposal to acquire Humm Group for 77 cents per share was announced to the exchange in December amid an activist campaign to remove Humm founder and major shareholder Andrew Abercrombie from the board, which ultimately succeeded.

Humm Group told the exchange on Monday that the independent board committee had decided to cease negotiations with Credit Corp after concluding that “it is not capable of recommendation to the company’s shareholders and that it is not in the interests of shareholders to continue discussions”.