Humm Group (HUM) takeover
Hi, I was wondering if you have any comments or recommendations on the potential offer for HUM group by the entity associated with the current chairman? It seems to be as, how would Sir Humphrey say 'a novel idea'.
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Hi Frank,
Nice turn of phrase!
For Subscribers not familiar with HUM its as $280mn business which operates as a diversified non-bank lender, specialising in flexible consumer BNPL products for both small and large purchases, commercial asset finance for SMEs, and consumer credit card solutions—primarily in Australia and New Zealand.
The proposed HUM takeover is being led by The Abercrombie Group (TAG), the family office of HUM Chairman Andrew Abercrombie, who already own 26.6% of the business.
- They have bid 58c, valuing the business at $286mn a more than 30% premium to where it was trading before the move.
SHAW’s analyst has a 85c NTA valuation of the business believing the bid is almost a flag of availability to the market. Either way we believe its a “low ball” bid BUT nobody was thinking this in June when it was bouncing around in the low 40c region.
