Humm Group shares soar after chair makes $286m acquisition bid
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More news: Shares in fintech Humm Group soared as it emerged from a trading halt after announcing that its chair Andrew Abercrombie is seeking to acquire the fintech in a deal that would value it at $285.6 million.
Humm Group’s share price jumped 10.4% to $0.53 by 2:38pm AEST.
Abercrombie’s family office and associates are proposing to buy all ordinary shares on issue, that they do not already own, for a cash price of $0.58 each.
Humm Group chair makes $286m acquisition bid on the fintech
The news: Fintech Humm Group has received a non-binding indicative offer to be acquired by The Abercrombie Group (TAG), the family office of Humm’s chair Andrew Abercrombie.
The numbers: TAG and associates propose to buy all of the Humm Group ordinary shares on issue that it does not already own for a cash price of $0.58 each, a 17.2% increase on its last close price of $0.48.
Humm Group shares were in a trading halt pending the announcement.
The offer price values Humm Group at about $285.6 million. TAG and associates already hold 26.6% of the shares on issue in Humm Group.
The context: The non-binding offer would be subject to completion of due diligence satisfactory to TAG and entry into a scheme implementation deed.
An independent committee composed of Humm Group directors Andrew Darbyshire, Teresa Fleming and Robert Hines have been given authority to consider and respond to the offer.
The committee determined to allow TAG a four week period to undertake targeted due diligence to enable the group to make a binding offer.
Humm Group has engaged K&L Gates as its legal adviser in relation to the offer while TAG has engaged MinterEllison. TAG has also engaged Gresham Partners as financial adviser.
The source: ASX
