Humm Group (HUM AU): Chairman's NBIO

• In December 2021, buy-now, pay-later outfit humm (HUM AU) announced approaches from third parties to acquire all/part of the company.

• Six months later, a proposed sale of Humm Consumer Finance business to Latitude (LFS AU) was terminated, before the scheduled vote, due to opposition from founder/chairman Andrew Abercrombie.

• Now the Abercrombie Group (TAG), the family office of Andrew Abercrombie, has tabled a A$0.58/share non-binding Offer, in cash, by way of a Scheme. Abercrombie hold 26.6%.

humm is illiquid. Look away now if not your thing.

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Conclusions First

• Terms are indicative. And optically, hardly a knockout.

• However, humm has granted TAG four weeks of due diligence.

• And humm has mostly traded sideways since the sale of HCF to Latitude collapsed. And shares cratered.

• humm's recent trading update paints a pretty decent picture.

• It's a curious thing Abercrombie's Offer is predicated on satisfactory due diligence.

The Trade:

• humm is engaged.

• If small, illiquid arbs are your thing, I'd pay up to A$0.53/share, assuming payment around the middle of December.