Humm Group inks A$335M deal to sell consumer finance business to Latitude

Humm Group Ltd. agreed to sell its Hummgroup Consumer Finance business to Latitude Group Holdings Ltd. in a cash-and-stock deal worth A$335 million.

The consideration for the transaction comprises 150 million Latitude shares and A$35 million cash. The sale covers the buy-now, pay-later, installment and credit card operations of Humm Group, according to a news release.

Humm Group shareholders will receive 68 Australian cents for every share they hold in the consumer finance business if the deal pushes through, subject to shareholder and regulatory approvals.

The consumer finance business will have more than A$8 billion of gross receivables post-purchase, and is expected to generate A$35 million of pre-tax cash earnings for full year 2023, Latitude said.

Flagstaff Partners and MinterEllison are advising Humm Group on the deal, while Jarden King & Wood Mallesons and KPMG are advising Latitude.