UPDATE: In a dramatic escalation within corporate Australia, activist shareholder Jeremy Raper, alongside Collins Street Asset Management, is pushing for significant changes at Humm. Days ahead of the pivotal Wednesday AGM, Raper has formally nominated himself and two other directors to the board, intensifying the ongoing battle over the company’s future.
This urgent move comes as the company faces scrutiny over its drawn-out bid for a buy-now, pay-later acquisition. Raper, who has increased his stake to 7.4 percent, is demanding accountability from the board, particularly targeting Robert Hines, chair of the independent board committee (IBC).
In a letter sent to Humm’s IBC on Friday, Raper outlined serious concerns regarding the company’s bid process and expressed disappointment in the current board’s handling of negotiations with Abercrombie. Raper accused the board of failing to secure a fair price for Humm and criticized their decision to engage with Abercrombie in the first place.
“It is unsurprising that Mr. Abercrombie was unable or unwilling to pay fair value and a market premium for the Company,” Raper stated. “What is profoundly disappointing is the imprudent decision of the Independent Directors to engage with him in the first place.”
Raper’s letter, just days before the AGM, signals a potential push to call a special meeting under section s249D to spill the board in early 2024 if the company does not commit to board renewal. The urgency of this situation is palpable as the AGM will also involve the adoption of the remuneration report and the re-election of several directors.
The stakes are high, with major shareholder Renaissance Asset Management yet to publicly weigh in on the situation. Raper, along with his proposed nominees — Garry Sladden, chairman of Ignite, and former Humm director Rajeev Dhawan — are poised to reshape Humm’s governance landscape.
With tensions mounting and the AGM looming, all eyes are on Humm as shareholders prepare to make critical decisions that could redefine the company’s trajectory. The potential fallout from these developments could have far-reaching implications not just for Humm, but for the broader landscape of corporate governance in Australia.
As the situation unfolds, it remains to be seen whether Raper’s aggressive stance will garner support among other shareholders or if the current board will hold firm against these challenges. Watch for updates as this story develops.
