The stock is rebounding on Friday.
The post Latitude share price launches 19% in first major gain since scrapped Humm deal appeared first on The Motley Fool Australia. –
The Latitude Group Holdings Ltd (ASX: LFS) share price is gaining meaningfully for the first time since the company’s deal to acquire the buy now, pay later (BNPL) leg of Humm Group Ltd (ASX: HUM) was scrapped last week. And itâs returned to the green in style.
At the time of writing, the Latitude share price is trading at $1.28, 18.52% higher than it was at Thursdayâs close.
Letâs take a closer look at whatâs been going on with the financial services provider and its stock lately.
Latitude share price ends the week with a bang
The Latitude share price is recovering some of its recent falls on Friday â a full week after the companyâs planned acquisition of Hummâs consumer finance business fell through.
Latitude previously offered to buy the business â housing Hummâs BNPL offering â for $35 million in cash and 150 million Latitude shares.
When the offer was first tabled in February, it was worth $335 million. However, its value tumbled alongside the Latitude share price before being binned.
The companies said the proposal was terminated due to âmajor disruption in financial marketsâ.
Latitude also told the market that less than 1% of its revenue and receivables come from its own BNPL offerings. It continued:
Latitude Group is experiencing good organic volume growth, is profitable and well capitalised to execute on a number of opportunities ahead.
The companyâs positive outlook came after Humm chair Christine Christian said the Humm consumer finance leg hadnât turned a profit in 2022 before the deal was scrapped.
Christian cited âintense competition, rising interest rates, and weakening consumer sentimentâ as the root causes of the segmentâs struggles.
The fallout of the dealâs abandonment appears to have caused plenty of drama in Hummâs camp. All but one member of the companyâs board vowed to walk this week. Meanwhile, all has been quiet with Latitude.
The Latitude share price traded flat on the day the deal was cancelled. It later tumbled nearly 23% between the end of last week and Thursdayâs close.
Todayâs rebound sees it now only around 8.5% lower than it was at the end of last Fridayâs session.
The post Latitude share price launches 19% in first major gain since scrapped Humm deal appeared first on The Motley Fool Australia.
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3 ASX All Ordinaries shares going gangbusters on Friday
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Humm share price sinks 11% following termination of $250m BNPL sale to Latitude
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.