Class shareholders approve HUB24 acquisition
The resolution to approve the scheme of arrangement under which HUB24 will acquire all shares in Class has been approved by Class shareholders.
Under the terms of a deal, HUB24 would acquire all of the shares in Class held by its shareholders, with eligible shareholders to receive one HUB24 share for every 11 Class shares and cash consideration of 12.5 cents for every Class share held at the scheme record date.
In the announcement made to the Australian Securities Exchange (ASX) earlier today, Class chairman, Matthew Quinn, said the board unanimously recommended that Class shareholders to vote in favour of the scheme, in the absence of other superior proposals.
He said the scheme consideration represented an attractive premium to Class’ recent historical trading prices.
“Further, the scheme provides the opportunity for Class shareholders to share in any future and combination benefits with HUB24.
“Receiving HUB24 shares will provide Class shareholders with ongoing exposure to the Class business as well as to the business of HUB24. Class will be able to leverage the enhanced scale, capabilities, distribution, product offering and technological development of the HUB24 and Class combined group to deliver on its strategic initiatives of increasing value, efficiency and enhancing product solutions for both existing and new customers.”
According to the statement, on implementation of the scheme, Class shareholders would be expected to own approximately 14.29% of the combined group with existing HUB24 shareholders owning the remaining approximately 85.71% of the combined entity.
Additionally, HUB24 shares issued as scrip consideration included an entitlement to any interim dividend paid by HUB24 in respect of the half year ended 31 December, 2021, and any associated franking credits (noting that the potential value in franking credits attached to any HUB24 interim dividend will depend on individual circumstances of each shareholder), the statement read.
The two firms entered into a scheme implementation deed on 18 October and expected the acquisition to accelerate HUB24’s platform strategy and consolidate the group’s position as a provider of integrated platforms, technology and data solutions for financial advisers, accountants, private banks, licensees, stockbrokers and their clients.
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