The offer is made at a difficult moment for HummGroup shareholders. Weaker lending volumes and profit downgrades have caused shares to struggle throughout 2025; activist sentiment has also been growing.
Credit Corp, a Sydney-based lender and debt buyer, has made a formal takeover offer to buy HummGroup, valuing the troubled fintech at A$385 million. The strategy is the most recent development in HummGroup’s year-long story, which has included boardroom conflicts, declining BNPL volumes, and rival bids from individuals close to the business.
This week’s proposal, which is presented as a path to stable operations under an owner with extensive credit management experience, would give Credit Corp control over HummGroup’s consumer and merchant finance businesses. Investors weary of BNPL volatility will be drawn to Credit Corp’s pitch, which emphasises operational integration and recovering margin pressure through tighter credit risk discipline.
The offer is made at a difficult moment for HummGroup shareholders. Weaker lending volumes and profit downgrades have caused shares to struggle throughout 2025; activist sentiment has also been growing. A move to reorganise the board has been reported, and a minority of shareholders have already expressed dissatisfaction with the company’s leadership, increasing pressure on the Independent Board Committee (IBC) to carefully consider any strategic alternative.
The Abercrombie Group, the family office associated with HummGroup founder Andrew Abercrombie, made a non-binding indicative bid of about A$286 million in mid-2025, but that amount is overshadowed by the A$385 million figure. Due to the suitor’s connection to a significant shareholder and chair, the previous strategy resulted in limited diligence and negotiations under strict governance protocols. As a result, Credit Corp’s proposal changes the situation from an insider-led buyout attempt to a corporate offer from a third party.
There has been a mixed response from the market. Some investors, who saw Credit Corp as a stabiliser for HummGroup’s consumer receivables, welcomed the prospect of a buyer with proven experience in distressed credit portfolios. Some questioned whether the price accurately represents HummGroup’s longer-term potential, especially in light of any potential recovery in BNPL demand or value in its merchant partnerships. When deciding whether to recommend the deal, the Independent Board Committee must weigh these opposing viewpoints.
Discussions will be complicated by a number of governance issues. In the past, HummGroup’s dealings with interested parties near its chair have necessitated strict conflict resolution procedures and meticulously planned diligence. The IBC must guarantee a fair process for minority shareholders, and any firm offer from Credit Corp will result in regulatory disclosure requirements and scrutiny from Australian takeover authorities.
In the case of Credit Corp, it is an expansion move that involves purchasing an adjacent service offering outside its core debt purchasing and collection operations. HummGroup brings diversification and expansion into point-of-sale lending and merchant aggregation, offering Credit Corp the opportunity to grow its product base and its gross receivables. As Credit Corp is purchasing HummGroup, it now faces the challenge of integrating technology infrastructure and underwriting models without undermining its merchant relationships.
Analysts state that for the deal to succeed, several factors will come into play: what the IBC thinks, the potential for other offers, and the number of shareholders willing to tender their shares for acceptance on the proposed price. Assuming that the IBC will support the offer, then the usual factors of conducting due diligence and obtaining regulatory approvals will determine the timeline and terms of the deal. This is besides the scenario where the board does not wish to deal with the offer and Credit Corp may decide to push for a hostile bid or reconsider the price.
However, beyond the balance sheet math, the sentiment test is also significant. HummGroup has strained its reputation with the slowing growth in BNPL business and increasing regulatory pressure on consumer credit products. Credit Corp’s point about a credit-specialist holding being better placed to deal with provisioning and recovery could be well taken – but only if they can demonstrate a plan on which they can deliver steady earnings as well as retain the parts of their business which still make business sense to merchants.