Humm Group receives takeover bid from Credit Corp, shareholders move to overhaul board
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The news: Buy now, pay later company Humm Group has received a non-binding takeover proposal from debt collector Credit Corp.
The company also confirmed that shareholders Jeremy Raper and Collins Street Value Fund have lodged a section 203D notice under the Corporations Act, stating an intention to remove Humm's chair, founder and major shareholder Andrew Abercrombie, as well as directors Robert Hines and Andrew Darbyshire, from the board.
The numbers: Credit Corp's indicative offer comprises a proposed scheme of arrangement at 77 cents per Humm share in cash. Should the scheme be unsuccessful, Credit Corp has tabled an off-market takeover offer at 72 cents per share in cash, conditional on the suitor achieving acceptances for 50.1% of Humm's shares.
The context: Humm said it received the proposal on 19 November and has been in discussions with Credit Corp since then. The offer came days after Abercrombie's family office The Abercrombie Group withdrew a 58 cent-per-share bid following backlash from Raper and Collins Street.
On Raper and Collins Street's move to overhaul Humm's directors, the company said it has not received any notice requesting it to call a meeting to consider the proposed resolutions.
Humm said its board is evaluating Credit Corp's proposal and has offered to provide the suitor with due diligence.
The source: ASX
