Humm Group urges shareholders to vote against 'ill-conceived' board spill
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The news: The board of buy now, pay later company Humm Group has urged shareholders to vote against a spill motion tabled by activist shareholders Raper Capital and Collins Street Asset Management.
The context: Raper Capital and Collins Street last month called a general meeting, scheduled for 19 February, seeking to ousrt Humm founder, chair and major shareholder Andrew Abercrombie, along with directors Robert Hines and Andrew Darbyshire.
"The notice has been prepared by the convenors and neither Humm nor any of its directors endorse or take any responsibility for its contents," the company said in an ASX release this morning.
Raper Capital and Collins Street, which have launched a website outlining their position, have proposed appointing Raper Capital's founder Jeremy Raper and former Kerry Packer-linked executive Garry Sladden to the board.
A vote would require more than 50% in favour of the board spill. Abercrombie owns 29.95% of the company, according to recent ASX filings. Raper Capital and Collins Street hold positions of 5.95% and 3.62% respectively.
Humm Group also disclosed last month that it had received a 77 cents-per-share proposal from debt collector Credit Corp.
What they said: "With their focus on ill-conceived and simplistic capital management, the convenors are proposing what the current board believes to be a so-called 'plan' that risks severeley undermining Humm's capital position and growth prospects," Humm Group told shareholders.
"Beyond the short-term sugar hit of their high-risk capital management proposal, the convenors offer no substantive strategy for Humm. Their plan amounts to little more than a promise to 'work it out later', which would leave Humm without direction at a critical time."
The source: ASX
