Humm Valuation - What is Sensible, page-17

Some interesting developments today between TGA and RMC.

RMC buys ~$150m commercial loan book from TGA.

Sales proceeds is $15m.

By my calc, this is a price of roughly 1x NTA or slightly under (i.e. loan receivable less securitised finance).

Big development as confirms pricing thus illustrating how underpriced HUM is at 0.3x BV - plus add in quality of HUM book (TGA desperate to sell yet got a good price).

Interestingly both RMC and TGA held 15.8m and 5.6m shares respectively in HUM (at last notice).
One looking to grow and the other cashed-up.

HUM too expensive for them IMO at ~$600m BV but still some competition helps.

RMC CEO -

The transaction supports the strategic growth objectives of Resimac’s Asset Finance division and follows a number of successful business and portfolio acquisitions Resimac has undertaken over time.

TGA Chair -

"We will be focusing on further opportunities, including new strategic investments in the non-banking financial services and wealth management sectors. Thorn is well capitalised to progress these opportunities.”