Dec 20 (Reuters) – Australia’s Humm Group (HUM.AX) said on Monday it had received takeover approaches that the buy now, pay later (BNPL) company plans on engaging further with, sending its shares soaring 16%.

The announcement comes months after the $29 billion buyout of Afterpay (APT.AX) by Block Inc (SQ.N) that analysts had said could spark a flurry of deal activity, including consolidation, as more household names look to enter the fast-growing sector.

Humm, a relatively small BNPL firm, did not name the parties that have made the approaches, but said it believes its “shares are undervalued by recent trading prices.”

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Shares in Humm soared as much as 16.2%, their sharpest rise since June last year, to A$0.86, giving the company a market value of around A$421 million ($299.88 million).

“The company intends to engage in relation to these proposals, to determine whether they are capable of becoming definitive offers that are in the best interests of the company and its shareholders,” Humm said in a statement while noting that it was profitable.

Humm appointed Flagstaff Partners as its financial adviser. It also named Christine Christian as its independent chairwoman, replacing Andrew Abercrombie.

($1 = 1.4039 Australian dollars)

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Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Subhranshu Sahu

Our Standards: The Thomson Reuters Trust Principles.

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