Non-binding proposal from Latitude to acquire Humm's consumer business for approx. $335m (150m Latitude shares and $35m in cash). Latitude shares will be distributed in species on a pro rata basis to HUM shareholders if the transaction goes through.

This would leave the commercial business which delivered a cash NPAT of $22.3m in FY2021.

HUM has a market cap of around $443m at $0.90. This would leave $108m of market cap for the commercial business or 5x FY21 cash NPAT.

Would have preferred an offer for the whole business at a higher price. Will need to do a bit more work to see what the value is if the transaction goes through.

Looks like a good deal for Latitude if it can meet its expectations of >$100m pre tax earnings in FY23 with $70m in synergies from the business.

Two directors purchase on market with Abercrombie purchasing over $1m in shares at $0.92.  He has close to 100m shares already.

Obviously, the directors consider the shares to be undervalued.

DIRECTOR TRANSACTIONS

6 May 21: Muir +29,544 for $28,921 [28,644]

6 May 21: Abercrombie +135,105 for $121,795 [31.80m; 66.68m]

6 May 21: Abercrombie +1m for $920,616 [31.66m; 66.68m]

23 Mar 21: Wylie +495,000 @ $0.98 for $485,397 [27.32m]

Significant director purchase of +$485,3971.  Director already has a significant holding of over 27m shares.

Wylie +495,000 @ $0.98 for $485,397 [27.32m]