The battle for control of ASX minnow Humm has been bruising for some big names in Australian business. And it’s not over yet.
Don’t expect the recriminations over the collapse of Humm’s deal to sell its buy now, pay later business to Ahmed Fahour’s Latitude Financial, andThe great irony of this shemozzle is that all the key players – the company’s founder and largest shareholder, Andrew Abercrombie, major shareholder and now former director John Wylie, the MA arbitrage funds that bought into this stock looking for a quick buck, and the strategic shareholders,– are all still stuck with each other, and all still looking...
“The simple fact remains that they and other shareholders, whose private intentions during this process appear to have been at odds with their public statements, would have seen their objectives achieved if one individual, Andrew Abercrombie, had not run the campaign he did, or if he had reversed his opposition. They should take the matter up with him.”
Abercrombie was prepared to entertain a deal, but only if it was improved, particularly with a bigger cash component. He argued the deal had strategic importance to Latitude and its deep-pocketed backer, given it offered the financial services group a way to bring more shareholders and liquidity onto its share register, opening up the possibility it could potentially break into the ASX 200.But the majority of directors felt the deal made sense.
The decision to abandon the deal last week without a shareholder vote is another point of contention.Advertisement It’s no wonder some shareholders argue the vote should have gone ahead regardless – if only to make the view of investors clear in what was obviously a very fluid situation.Several investors now say they would have changed their original votes against the deal if given a chance, claiming their opposition was only designed to force the Humm board to press Latitude for a better deal.
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‘Muppet show on steroids’ as Humm board quitsThe Humm board’s majority directors have agreed to step down, with John Wylie and Alistair Muir to leave immediately.
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