Why are Humm group (ASX:HUM) & Latitude (ASX:LFS) shares in news today?

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Highlights

  • Humm group shares slumped over 21% after the company announced the termination of the sale agreement with digital payment company Latitude Group Holdings Limited.
  • As per the ASX announcement, the decision has been taken given the current disruption in financial markets.
  • Latitude Group Holdings Limited shares traded 3.571% lower at AU$1.350 per share on ASX at 2:25 PM AEST today.

The share price of ASX-listed financial services company Humm group limited (ASX:HUM) traded in red on Friday (17 June) after the company revealed that it has agreed to terminate the proposed sale of Humm consumer finance (HCF) to Latitude Group Holdings Limited (ASX:LFS). As per the company, this agreement is mutual, and the decision has been taken in light of the current major disruption in financial markets. Following this announcement, Humm group shares slumped 21.739% to trade at AU$0.450 per share on ASX at 2:17 PM AEST. As per the announcement, the general and scheme of arrangement meetings scheduled to take place on 23 June 2022 has been cancelled.

Image Source: © Franckito | Megapixl.com

It is to be noted that the Australian equities have fared poorly since the start of this week, and the benchmark index has closed in red for five consecutive trading sessions now. The sell-off on ASX is a result of the weak performance of US stocks and the recent interest rate hike by the Federal Reserve and other central banks, which have triggered recession fears among investors. On Thursday, all the three US indices closed lower in the overnight trading on Wall Street.

 

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The shares of Humm group limited have fallen nearly 56.73% in the last one year, while the stock is down almost 51.09% year-to-date (YTD). The company has a market capitalisation of AU$284.77 million.

Meanwhile, the impact of the broader market performance and this announcement was also seen on the shares of Latitude Group Holdings Limited. Latitude Group Holdings Limited shares were spotted trading 3.571% lower at AU$1.350 per share on ASX at 2:25 PM AEST. 

Latitude Group Holdings Limited commands a market capitalisation of AU$1.45 billion. The share price of Latitude Group Holdings Limited has fallen almost 41.56% in the last one year. 

Earlier this year, Australian digital payments company Latitude Group Holdings Limited had unveiled its intention to acquire Humm’s consumer business for nearly AU$335 million. Both the companies have updated the investors about the termination of the sale agreement via the ASX announcement. The companies have not said anything about their future course of action post this development. 

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