Christine Christian slams Andrew Abercrombie as bid to sell Humm BNPL unit to Latitude collapses

Humm says shareholder support was overwhelmingly against the planned sale of its consumer finance business, and has lashed out at former chairman, Andrew Abercrombie.

Humm chair Christine Christian: ‘Andrew Abercrombie convinced some shareholders to stick with him and vote against the deal on the basis that a higher offer would come from Latitude. It is clear that he overplayed his hand.’ Picture: Stuart McEvoy

Humm says shareholder support was overwhelmingly against the planned sale of its consumer finance business, blaming the company’s former chairman, Andrew Abercrombie, for a “deceitful and … destructive corporate play”.

In an extraordinary statement on Sunday, the company’s chairwoman, Christine Christian, attacked Mr Abercrombie, Humm’s largest shareholder, and accused him of killing the sale of the buy now, pay later division to Latitude.

Ms Christian said some 50 per cent of shares had been voted by Thursday evening – the night before the deal was pulled – with 78 per cent against the sale.

“With the Latitude share price declining, the consideration fell outside the independent expert’s valuation range. On this basis, the majority directors asked Latitude to sharpen its pencil and adjust its offer. Latitude said it would not change its offer at all,” she said.

“Andrew Abercrombie convinced some shareholders to stick with him and vote against the deal on the basis that a higher offer would come from Latitude. It is clear that he overplayed his hand.”

Former Humm chairman Andrew Abercrombie. Picture: AAP

Humm and Ms Christian had repeatedly urged shareholders to support the sale – for 150 million Latitude shares and $35m – and calling it “highly compelling”.

She also said the BNPL business had not been profitable in the four months to April 30, although a trading update showed the division had made a $17.3m profit for the financial year to date.

In response, Mr Abercrombie said: “Evidently, Christine Christian and her majority board knew better than Humm shareholders what was best for them – and denied them the opportunity to vote by letting Latitude off the hook. “The only people responsible for not extracting a better deal from Latitude are Humm’s majority directors who consistently positioned the consumer finance business negatively, creating an environment where Latitude could not credibly increase its offer price,” he said.

Humm shares closed down 21.7 per cent – or 12c – on Friday, giving the company a market capitalisation of just $221m.

The transaction would have been valued at some $350m when struck, but recent falls in the Latitude share price meant it had fallen to $245m on Thursday.