The Humm Group Ltd (ASX: HUM) share price is shooting higher on Monday morning.
At the time of writing, the financial services company's shares are up 16% to 86 cents.
Image source: Getty Images
Why is the Humm share price shooting higher?
Investors have been bidding the Humm share price higher this morning after the release of a promising announcement.
While the initial purpose of the announcement was to reveal the exit of its Chair, Andrew Abercrombie, it included a piece of information that got investors excited.
In respect to the former, Mr Abercrombie has stepped down as Chair and will be replaced with Christine Christian AO.
What has got investors excited?
The Humm share price was given a major boost today after the company revealed that it has received approaches from third parties to acquire all or part of Humm Group.
No details on the approaches have been provided. However, the company intends to engage with these proposals to determine whether they are capable of becoming definitive offers that are in the best interests of the company and its shareholders.
The Humm Board has warned that there is no assurance that any transaction will occur. It also advised that it considers that the business is performing in line with expectations and that it has significant potential, both in Australia and overseas. Furthermore, the Board notes that the company remains profitable and has no corporate debt.
In light of this, it feels the company's shares are undervalued by recent trading prices on the ASX and is keen to maximise value for all shareholders.
Humm's Independent Chair, Christine Christian, commented: "On behalf of my fellow directors I thank Andrew for his service and his counsel as Chairman of the Group. Andrew was a founding shareholder of the original FlexiRent business some 20 years ago now and the Board continues to benefit from his insights and corporate knowledge. I look forward to working with my fellow directors to assess the proposals put before us and importantly, to support the management team as they implement the company's strategy to grow the business profitably."
