The HUB24 Ltd (ASX: HUB) share price is in the red this morning after changes were made to an acquisition proposition posed to Class Ltd (ASX: CL1).
Following discussions between the companies, HUB24 has upped its cash offer and given Class shareholders access to its first-half dividend.
At the time of writing, the HUB24 share price is $28.61, 0.49% lower than its previous close.
At the same time, the Class share price is $2.635, 0.96% higher.
For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.34%.
Let's take a closer look at the changes made to HUB24's takeover offer.
HUB24 share price struggles on new acquisition terms
The share price of both HUB24 and Class are on the move this morning, albeit in different directions, following changes to the takeover offer posed to software developer Class by fintech company HUB24.
Originally, HUB24 offered Class shareholders 10 cents cash per share, as well as 1 HUB24 share for every 11 Class shares held.
Now, HUB24 will provide Class investors with 12.5 cents per share, with the issued scrip to include any dividends — and resulting franking credits — it might pay for the first half of financial year 2022.
However, there's a downside for Class shareholders. Class has agreed not to pay any dividends, including any ordinary dividend of up to 2.5 cents for financial year 2022.
The Class board has recommended the company's shareholders vote in favour of the transaction.
A scheme booklet further detailing the proposed transaction is expected to be made available tomorrow.
According to HUB24, the acquisition will likely accelerate its plan to be a leading provider of integrated platforms, technology, and data solutions for the financial sector.
It's also expected to create competitive advantages and diversify both companies' revenues.
When the proposed acquisition was first announced on 18 October, the Class share price shot up a massive 61.3%.
That same day, the HUB24 share price fell 0.88%.
