Credit Corp Group Limited has submitted a non-binding proposal to acquire 100 per cent of Humm Group. The offer outlines a scheme of arrangement at 77 cents per share or an off-market takeover bid at 72 cents per share. The offer is conditional on Credit Corp securing acceptances from more than 50 per cent of Humm shareholders. Credit Corp is a debt purchasing company and provider of consumer finance. Humm Group is a buy-now-pay-later provider offering payment solutions across various retail sectors.
The Humm board has acknowledged receipt of the proposal and is currently evaluating it with the assistance of its financial and legal advisors. The board stated it is open to engaging constructively on any transaction that appropriately reflects shareholder value. The company has made no definitive commitment to accept the Credit Corp proposal at this stage.
The announcement comes as Humm Group faces internal pressures from shareholders Jeremy Raper and Collins Street Value Fund. These shareholders have issued a Section 203D notice, indicating their intention to move resolutions aimed at removing current directors Andrew Abercrombie, Robert Hines, and Andrew Darbyshire. The notice extends to any directors appointed after December 15.
Humm Group has emphasised that Credit Corp’s proposal remains non-binding and is subject to several conditions. These include the satisfactory completion of due diligence, obtaining necessary regulatory approvals, securing financing, and receiving final approval from the Credit Corp board.
