All bar one of the Humm board will walk away after the sale of its BNPL division failed.
The post Humm share price tumbles 4% as majority of board exits appeared first on The Motley Fool Australia. –
The sale was vehemently opposed by Humm founder, director, and largest shareholder Andrew Abercrombie â who the resigning members of the board now reject working beside.
The Humm share price plunged almost 4% to 50.5 cents in early trading today before regaining ground to 51 cents at the time of writing.
Letâs take a closer look at what might be weighing on the finance and buy now, pay later (BNPL) providerâs stock today.
Humm share price slumps amid board resignations
The Humm share price is sinking on Wednesday. Its tumble comes after the company announced its chair and all directors â except Abercrombie â are stepping down.
It follows last week’s news that the sale of Humm’s BNPL business to Latitude Group Holdings Ltd (ASX: LFS) had fallen through. Its termination was said to be due to “major disruption in financial markets”.
âThe events leading to the termination of the proposed sale of Humm Consumer Finance to Latitude Group Holdings Ltd (ASX: LFS) â¦ have caused the majority directors of Humm â¦ to conclude that they cannot remain on the board of directors with Andrew Abercrombie,â the company said in a release to the ASX this morning.
The release detailed the immediate resignation of directors Alistair Muir and John Wylie.
Meanwhile, Humm chair Christine Christian and directors Carole Campbell and Rajeev Dhawan will resign when replacement directors are appointed.
The company noted the gradual handover would allow the company to âdeal with the challenges and opportunities aheadâ.
Abercrombie labelled the now deceased deal â that would see the companyâs BNPL leg sold to Latitude â a âdudâ and “nothing but a garage sale”.
Thatâs despite Humm noting the business hadnât turned a profit in 2022 and risks the companyâs share price.
Board unanimous ‘excluding one lone dissenting director’
The board further outlined its position regarding the failed sale in a letter to shareholders last night that accused Abercrombie of undertaking “a strident campaign against the proposed sale”. The board went on to say:
The majority directors have been prepared to act to secure [the sale] despite multiple aggressively worded private threats of legal action against us personally from Andrew Abercrombie.
[T]his was the entire board of highly experienced people acting unanimously in all these decisions, excluding one lone dissenting director.
Hummâs stock has struggled this year. It has fallen 45% year to date. Itâs also 50% lower than it was this time last year.
The post Humm share price tumbles 4% as majority of board exits appeared first on The Motley Fool Australia.
Before you consider Humm Group Ltd, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Humm Group Ltd wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
See The 5 Stocks
*Returns as of January 13th 2022
setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
Why Block, Fortescue, GUD, and Humm shares are sinking today
Latitude share price lifts on cancelled Humm deal
Humm share price sinks 11% following termination of $250m BNPL sale to Latitude
Why Humm, Inghams, Link, and Smartgroup shares are falling
âA dud dealâ: Why is the Humm share price falling on Thursday?
Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Humm Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.