Australia's Latitude Group rescinds buyout offer for Humm's BNPL business (updated)

Humm

17/06/2022 01:04

(Adds details, background)
    June 17 (Reuters) - Australian digital payments and lending
firm Latitude Group Holdings  LFS.AX  on Friday terminated its
A$335 million ($235.97 million) offer to buy Humm Group Ltd's
 HUM.AX  consumer unit that includes its buy now, pay later
(BNPL) business.
    Humm Group cited current major disruptions in the financial
markets for the termination, in a statement to the bourse.
    The termination comes after Humm said its consumer unit,
Humm Consumer Finance, saw a 61% on-year plunge in year-to-date
cash net profit after tax at the end of May due to intense
competition, rising interest rates, and weakening consumer
sentiment.  urn:newsml:reuters.com:*:nASX9cB0PQ
    Additionally, the fintech firm said it intended to review
the strategic direction of its consumer unit to focus on its
core products and markets as it seeks to restore profitability.
    Latitude Group said in a separate statement that its BNPL
business represented less than 1% of its revenue and
receivables, and that it was profitable and well capitalised to
execute future opportunities.  urn:newsml:reuters.com:*:nASX3t1zxQ     

($1 = 1.4196 Australian dollars)

 (Reporting by Tejaswi Marthi in Bengaluru; Editing by Vinay
Dwivedi and Subhranshu Sahu)
 ((Tejaswi.Marthi@thomsonreuters.com;))