Hub24 has simplified its acquisition offer for Class by increasing the cash consideration for the latter’s shares and adding an interim dividend if the transaction is completed before the dividend payment date.
In an announcement released to the Australian Securities Exchange (ASX), Class stated it has agreed to amendments to the scheme implementation deed for its acquisition by Hub24 first announced in October.
Under the simplified scheme, Hub24 has increased the cash consideration from $0.10 per Class share to $0.125 per share, but Class will no longer be entitled to declare any dividend, including any interim dividend of up to 2.5 cents per share in respect of the 2022 financial year.
Additionally, Class shareholders who receive Hub24 shares as a result of the scheme being successfully implemented will now be eligible for any Hub24 2022 financial year interim dividends and associated franking credits.
“For the avoidance of doubt, Class shareholders will receive scrip consideration comprising 1 Hub24 share for every 11 Class ordinary shares held on the record date, in addition to the increased cash consideration and Hub24 dividend (if any),” Class stated in the ASX announcement.
“The Class board unanimously recommends that all Class shareholders vote in favour of the scheme in the absence of any superior proposal and subject to an independent expert concluding and continuing to conclude that the scheme is in the best interests of Class shareholders.”
The SMSF administration provider added its directors intended to vote all the Class shares they held or control in favour of the revised scheme and its completion.
Hub24 stated the proposed transaction remained on track with the timetable set out in the October announcement.
“The proposed transaction is expected to accelerate Hub24’s platform of the future strategy, consolidating the group’s position as a leading provider of integrated platforms, technology and data solutions for financial professionals and their clients,” it stated.
“The combined business is expected to provide a competitive advantage and diversification of revenue for both companies.”
