LFS - Latitude Financial Services Group

[System]

Latitude is a leading digital payments, instalments and lending platform, with 2.6 million customer accounts and more than 1,950 merchant partners across Australia and New Zealand.

Latitude provides innovative products and services that support the needs of customers and merchants and other commercial partners, leveraging its technology and database of customer information.

Latitude offers its customers in Australia and New Zealand payment and instalments products ('L-Pay') and lending products ('L-Money'). Its Business-to-Business-to-Consumer ('B2B2C') and Direct-to-Consumer ('D2C') distribution model enables customers to transact through Latitude's established network of commercial partners, as well as with Latitude directly, online and by phone.

Headquartered in Melbourne, Australia, Latitude employs approximately 1,600 FTE staff.

It is anticipated that LFS will list on the ASX during October 2019.

https://www.latitudefinancial.com.au

 

[bigdog]

https://www.theage.com.au/business/...pulls-plug-on-3-2b-float-20191015-p530tr.html

Ahmed Fahour's Latitude pulls plug on $3.2b float
By Colin Kruger and Clancy Yeates
October 15, 2019 — 8.06pm

Ahmed Fahour's Latitude Financial Group has failed in its second attempt at a public listing despite its share offering being significantly discounted this week.

The bookbuild for the Latitude initial public offering (IPO), the biggest proposed sharemarket float of the year, was due to close at 5pm on Tuesday.

Sources close to the deal, who cannot talk officially due to confidentiality around the transaction, confirmed late on Tuesday that the IPO had been called off.

“They raised the money, but there was a concern over quality in a small portion of the bookbuild," said one source.

This prompted concern about after-market performance of the shares if the planned float went ahead on Friday.

A fund manager, who did not want to be named because discussions of the planned IPO were still confidential, said he had been told the float had been pulled, though this had not come from the bankers on the deal.

"There just wasn't enough demand even though it was covered at the bottom end of the range," the fund manager said.

"There probably wasn't enough to ensure a suitable after-market."

A spokesman for Latitude's current owners declined to comment on Tuesday evening.

As recently as midday on Tuesday, the lead managers for the IPO, Goldman Sachs, Macquarie Group and UBS, sent a message to brokers expressing their confidence that buyers had been found for the billion dollars worth of shares on offer to investors valuing the consumer finance group at $3.2 billion.

It has been a rough ride for the consumer finance group which was sold by its former parent GE in 2015 to private equity firms KKR, Varde Partners, and Deutsche Bank. The three investors would have still owned more than half of the Latitude business after the float.

During the past few days there have been several analysts talking down the float opportunity. On Monday James Greenhalgh from Intelligent Investors called it "one of the most unappealing large IPOs we have ever seen".

Latitude Group hired former Australia Post chief executive Mr Fahour last year after its attempt at a $5 billion IPO failed.

The company announced its latest attempt to float last month with a share price of up to $2.25, which would have valued the company at up to $4 billion.

On Friday, the float's managers confirmed an offer price of $2 a share. On Monday this was discounted to $1.78.

Latitude, formerly known as GE Money, makes about half its operating income from instalment loans, with most of the remainder coming from personal loans, auto loans and credit cards. Its business includes Myer credit cards and point of sale finance at stores such as Harvey Norman, Apple and JB Hi-Fi.

In other news, Latitude continued its drip feed of merchant signings for its new buy-now, pay-later product announcing on Tuesday that Virgin Australia will be using the new service next year.

It was hoped that its aggressive push into this Afterpay-dominated market would help boost the company's valuation.

Virgin customers will be able to use the interest-free instalment payment service, LatitudePay, for purchases of up to $1000 in the first half of 2020. A service for purchases of more than $1000 will be available later next year.

"This partnership will provide greater payments flexibility for Virgin Australia's customers, who now have the choice to 'fly now, pay later' when they book a domestic or international flight," said Mr Fahour.

 

[galumay]

Australia's version of WeWork!

 

[So_Cynical]

Australia's version of WeWork!

That's actually called Wotso and wil be spun out of BWF sometime over the next few months...but yeah i know what you mean, a dodgy float is a dodgy float, fecking private equity.

 

[System]

It is anticipated that LFS will list on the ASX on 20 April 2021.

 

[Dona Ferentes]

It is anticipated that LFS will list on the ASX on 20 April 2021.

third time lucky ??

The sale of 10 per cent of Latitude Financial Group to Japan’s Shinsei Bank paves the way for the country’s largest non-bank consumer finance business to list on the ASX without having to sell a single share.

Now LFS will have 4 shareholders: Shinsei, KKR, Deutsche Bank and Varde Partners. The $3 billion company now has 28 per cent of its share register classified as “free float”. Under ASX rules, a company with a free float of more than 20 per cent can list without the need to sell stock to new investors. Latitude had an 18 per cent free float before the Shinsei deal thanks to institutional investors switching their stock from a private equity fund to direct ownership.

This means it can go ahead with an initial public offering by way of a compliance listing and avoid the problem it faced in 2019 when an IPO was pulled because local institutions would not stump up $1.2 billion.

Latitude makes about $1 billion in operating income a year, more than $200 million in annual cash profit and has north of $8 billion in loan receivables.

Listing date	20 April 2021 #
Company contact details	https://www.latitudefinancial.com.au/ Ph: (03) 9058 1564
Principal Activities	Consumer finance – instalments and lending
GICS industry group	TBA
Issue Price	$2.60
Issue Type	Ordinary Fully Paid Shares
Security code	LFS
Capital to be Raised	$200,000,000
Expected offer close date	16 April 2021
Underwriter	Fully underwritten. Credit Suisse (Australia) Limited, Jefferies (Australia) Pty Ltd and Merrill Lynch Equities (Australia) Limited (Joint Underwriters and Lead Managers)

 

[Dona Ferentes]

and open ... only stags were the existing holders: Close at day's low $2.70

IPO priced at $2.60: today's action, 3 minute intervals

 

[peter2]

Pleased to see the CEO say that they're in the credit business. Politicians need to wake up and classify all BNPL companies as credit providers. Then, see that the current credit laws are applied.

Another stock to add to the BNPL watch list.

 

[Dona Ferentes]

Ahmed Fahour's Latitude pulls plug on $3.2b float
October 15, 2019 —
Ahmed Fahour's Latitude Financial Group has failed in its second attempt at a public listing despite its share offering being significantly discounted this week. A fund manager said:
"There just wasn't enough demand even though it was covered at the bottom end of the range," . "There probably wasn't enough to ensure a suitable after-market."

Third time unlucky. like the quondam attempts.

after 5 days, there has been minimal interest. Now sub $2.60

 

[frugal.rock]

Politicians need to wake up and classify all BNPL companies as credit providers. Then, see that the current credit laws are applied.

I recently noted a head from the Commonwealth Bank calling for the same thing.
Timely, with them entering the market themselves.
I know Z1P do a credit check before approval, however, the biggest loser could be Afterpay, as to my knowledge, they don't apply a credit check before onboarding.

 

[Dona Ferentes]

Another stock to add to the BNPL watch list.

HUM dropped nearly 40% to 43c on Friday. Back above 50c today, but only just.

In light of the current major disruption in financial markets, Latitude Group Holdings Limited (ASX: LFS) and Humm Group Limited (ASX:HUM) have mutually agreed to terminate the proposed sale of humm consumer finance (HCF) to Latitude.

and Latitude LFS not doing too well, either, falling because their growth pathway could be crimped. despite saying
" BNPL represents less than 1% of Latitude’s revenue and receivables. Latitude Group is experiencing good organic volume growth, is profitable and well capitalised to execute on a number of opportunities ahead. " ... but that hasn't helped. Now at a low of $1.25.

 

[Belli]

Latitude LFS not doing too well,

It certainly isn't.

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02644401-3A614964?access_token=83ff96335c2d45a094df02a206a39ff4

 

[Belli]

It certainly isn't.

Never a truer post was made.

Yep, I'm one whose information has been compromised. And from a credit card, an account which was closed some 15 years ago, which was backed by GE Money and subsequently purchased by Latitude Financial Services.

Given the length of time since that account was closed, it beggars belief they still held my data. What a potential PITA.

 

[greggles]

This hack really highlights the way companies keep critical personal information not just for far longer than is necessary but keep it on servers that are accessible to hackers.

The federal government needs to step in and pass legislation that mandates the destruction of critical personal data once it becomes unnecessary to retain it. It's clear that these companies take a very laissez-faire approach to our privacy and without serious penalties these insnatnces of personal data being compromised are just going to keep on happening.

What I want to know is, how will LFS be held to account for the damage caused by this personal data being accessed by hackers? The scale of it is huge.

 

[Belli]

This hack really highlights the way companies keep critical personal information not just for far longer than is necessary but keep it on servers that are accessible to hackers.

The federal government needs to step in and pass legislation that mandates the destruction of critical personal data once it becomes unnecessary to retain it. It's clear that these companies take a very laissez-faire approach to our privacy and without serious penalties these insnatnces of personal data being compromised are just going to keep on happening.

What I want to know is, how will LFS be held to account for the damage caused by this personal data being accessed by hackers? The scale of it is huge.

Yes and isn't it lucky I still have the same email address, and house address, from that time. Blowed if I know how those who have changed either will get notification.

 

[greggles]

Yes and isn't it lucky I still have the same email address, and house address, from that time. Blowed if I know how those who have changed either will get notification.

I find the fact that Lattitude retained critical personal information after an account had been closed to be completely mind boggling. If this isn't a reason for legislative reform in this area then I don't know what is.

 

[divs4ever]

completely mind boggling

that wasn't the term that sprung straight into my mind ... but then the term that went through my mind might activated the ASF moderation team ( either laughter or abject horror )

however stuff like this has been noted and LFS attained the privilege of appearing on my AVOID list

 

[Belli]

I find the fact that Lattitude retained critical personal information after an account had been closed to be completely mind boggling. If this isn't a reason for legislative reform in this area then I don't know what is.

Here you go @greggles.

Data Protection Laws and Regulations Report 2022-2023 Australia

Data Protection Laws and Regulations covering issues in Australia of Relevant Legislation and Competent Authorities, Definitions, Territorial Scope

iclg.com

See " Right to deletion/right to be forgotten"

Of course if you don't know the organisation has your data, well, bad luck you.

 

[greggles]

LFS has advised this morning that it has received a ransom demand from the hackers. It has also said that it will not pay any ransom.

There has been a tremendous loss of good will due to this hack, but hopefully some positive change will occur because of it.

 

[Belli]

A fiasco par excellence. B@%#ards.

Latitude Financial only has 3 million customers, so why did it have 14 million personal records on file?

As Latitude Financial investigates last month's cyber breach, more customers are being emailed about their personal data being compromised — even if they never signed up for a Latitude product.

www.abc.net.au