From the AFR on the 10 Jan 22.Commercial equipment finance,...

From the AFR on the 10 Jan 22.

Commercial equipment finance, estimated to be a $41 billion market, may be of interest to private equity investors like Affinity Equity Partners or Cerberus Capital Management. Affinity bought debt finance provider Scottish Pacific in a $612 million deal in 2018, while Cerberus purchased car loan player Angle Finance from Westpac last year.

Flexicommercial reported loan volumes of $465 million in the 2021 financial year, up from $263 million in FY20. It made net profit of $22.4 million. It has a medium-term target of $1 billion in annual loans, which would represent 21 per cent CAGR [compound annual growth rate] over next four years. It did 6142 transactions in FY21, and has plans to double this by 2025.

While possibly too small for the major banks, and with Bank of Queensland declaring it has no interest in Humm, the commercial business could be of interest to three smaller ASX-listed players: Judo Bank, which is building its equipment loan offering that allows assets to be provided as security for loans; Liberty, which also lends to small business; and Earlypay, the former CLM Group, which provides equipment finance.

UBS analyst Apoorv Sehgal said Latitude’s offer for the consumer business implied a 4.8 times PE multiple for the remaining commercial business. “We were encouraged by Humm’s recent investor day, in which the company disclosed medium-term targets for profit growth,” he said. “Within commercial, recent growth has been strong with Humm targeting $1 billion-plus volumes in the medium term.”


From The Australian 26 Jan 22

The remaining arm of Humm comprises its commercial and leasing unit, operating across Australia and New Zealand, and there are suggestions that suitors have already made approaches for that part of the operation.Kohlberg Kravis Roberts last year considered an acquisition of the New Zealand commercial business that was for sale, thought to be worth about $300m, but it was withdrawn from the market.

Thought to be worth $300 million? Were shareholders informed of such approaches last year???

Most expect Cerberus Capital Management to come forward and make an acquisition.


Most expect? who is "MOST"???