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Latitude closer to buying Humm’s consumer arm in $335m deal

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Latitude Group has inked an agreement to acquire Humm Group’s consumer business.

Humm Group confirmed on Friday it has entered into a binding agreement with Latitude Group to sell hummgroup consumer finance (HCF), comprising its buy now, pay later (BNPL), instalment and credit card operations, to Latitude for $335 million. 

The financial group would pay $35 million in cash and issue 150 million shares to acquire the unit.

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"This is a transformational transaction for hummgroup that represents compelling value for shareholders," said HUM chairman Christine Christian.

"It is proposed that HUM shareholders will receive the consideration for the sale of HCF, comprising shares in Latitude  which will provide HUM shareholders with the opportunity to participate in the growth benefits and synergies arising from the combination  and cash," Ms Christian said.

After completing the sale of HCF and distributing the share and cash consideration to shareholders, HUM expects that it will have unrestricted cash, which will be first applied to the retirement of its perpetual note. The remainder of the cash, HUM confirmed, will either be allocated to investing in the growth of its commercial business or capital management initiatives.  

"This is an attractive outcome for HUM shareholders," Ms Christian said. 

HUM confirmed it will retain ownership of its commercial business and stay listed on the Australian Securities Exchange.

Latitude closer to buying Humm’s consumer arm in $335m deal

Latitude Group has inked an agreement to acquire Humm Groups consumer business.

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Maja Garaca Djurdjevic

Maja Garaca Djurdjevic

Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.

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