Director Removal Notice and Conditional Takeover Proposal Put Humm Group’s Future in Question

Boardroom Turbulence at Humm Group

Humm Group Limited, a diversified financial services company operating across multiple countries, has been thrust into a period of uncertainty following the receipt of a Section 203D notice from shareholders Jeremy Raper and Collins Street Value Fund. This notice signals an intention to move resolutions to remove three current directors, Andrew Abercrombie, Robert Hines, and Andrew Darbyshire, potentially reshaping the company’s leadership.

While the notice itself does not yet trigger a shareholder meeting, it underscores growing shareholder activism and dissatisfaction with the current board. The company has not received any formal meeting requests under the relevant Corporations Act provisions, leaving the timing and outcome of any director removal uncertain.

Credit Corp’s Conditional Acquisition Proposal

Adding to the intrigue, Humm Group has also disclosed a non-binding indicative proposal from Credit Corp Group Limited to acquire 100% of its shares. Credit Corp’s offer includes a scheme of arrangement priced at $0.77 per share or, failing that, an off-market takeover offer at $0.72 per share, both subject to conditions such as due diligence, regulatory approvals, and financing arrangements.

The hummgroup board is carefully considering the proposal with the assistance of financial and legal advisers. While no binding agreement exists, the board has expressed willingness to engage constructively with Credit Corp to explore a transaction that could deliver appropriate value to shareholders.

Implications for Shareholders and Market

For shareholders, these developments present both opportunity and risk. The potential acquisition could unlock value through a premium offer, but the non-binding nature and multiple conditions mean there is no guarantee of completion. Meanwhile, the proposed board changes could signal a shift in company strategy or governance, adding another layer of complexity.

Humm Group operates in competitive consumer finance markets across Australia, New Zealand, Ireland, Canada, and the UK, making any change in control or leadership particularly significant. Investors will be watching closely for updates on due diligence progress, the finalisation of any agreements, and the scheduling of shareholder meetings.

As the situation evolves, the company has assured the market that shareholders need not take any immediate action and that it will continue to provide timely disclosures in line with its regulatory obligations.