Harvey Norman Partner Cancels BNPL Takeover
Humm Group will no longer sell its buy now, pay later business to longstanding Harvey Norman partner Latitude, as the financial markets continue to plummet.
“In light of the current major disruption in financial markets, Latitude and Humm have mutually agreed to terminate the proposed sale of humm consumer finance to Latitude,” Latitude told the ASX on Friday morning.
“BNPL represents less than 1 per cent of Latitude’s revenue and receivables.
“Latitude is experiencing good organic volume growth, is profitable and well capitalised to execute on a number of opportunities ahead.”
The deal was for 150 million Latitiude shares and $35 million in cash, originally worth over $350 million.
As of today, the same deal is worth just $245 million.
Latitude’s shares are down 30.15 per cent this year, having fallen 17.5 per cent in the last five days.
Humm shares also suffered upon news of the cancelled deal, falling 11.3 per cent to $0.510, the lowest point since March 2020.