The Latitude Group Holdings Ltd (ASX: LFS) share price jumped from the gates and is now rangebound in early trade on Friday.
At the time of writing, it's fetching $1.40 — the same as yesterday's closing price — having already slipped more than 29% into the red this year to date.
In broad market moves, the S&P/ASX 200 Index (ASX: XJO) started down on Friday and is currently tracing 2% lower at 6,435. Returns for the last five trading days on each are below.
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Latitude share price jumps amid cancelled deal
The company revealed today that its agreement to purchase Humm Group Ltd (ASX: HUM)'s buy now pay later (BNPL) business has been terminated. The transaction was valued at $250 million.
Latitude notes the decision to terminate was mutual.
In light of the current major disruption in financial markets, Latitude and Humm have mutually agreed to terminate the proposed sale of humm consumer finance (HCF) to Latitude.
Whilst investors have been driving up Latitude early today, the same can't be said for the Humm share price. It's tracking almost 14% lower at the time of writing.
The drop brings Humm's losses to more than 45% for the year to date and 52% over the past 12 months.
Meanwhile, Humm said it continued to believe that HCF was a "high-quality business".
"The board…intends to review HCF's strategic direction to focus on its core products and markets in order to restore profitability," it said.
Latitude's attitude was a more upbeat, noting a small impact. It advised it was profitable and well-capitalised, with growth tailwinds.
"BNPL represents less than 1% of Latitude's revenue and receivables," the company said.
The Latitude share price is down more than 39% in the last 12 months.
