Humm's entire board (minus one director) has decided to walk away from the company, following its failed sale to Latitude.
👉 Background: Humm is a financial services company with a big focus on BNPL. Earlier this year, Latitude offered to buy Humm for around $355 million, in a part-cash-part-shares deal.
👉 What happened: To incentivise shareholders to approve the deal, Humm's directors told shareholders the BNPL division of the company was unprofitable.
👉 What else: From the time the saga started, Latitude's shares have fallen. A lot. That meant the value of the deal had tanked about $100 mill. Now, the deal's off and the entire board, apart from one director, has agreed to step down.
💡When things go pear-shaped at a company, often directors and CEOs are the first to fall on their sword 🗡.
💡The directors and executives of a business are very much expected to be representing the best interests of their shareholders. But in Humm's case, its directors called the business 'unprofitable'. Yikes.
💡Now that the deal hasn't gone through, it's a hard place to come back from. So just like when AGL's directors walked out the door after the company's failed demerger plans, Humm's directors have had to bow out too.
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