The HUB24 Ltd (ASX: HUB) share price is in the green on Thursday after the company released its Scheme Booklet detailing its planned takeover of Class Ltd (ASX: CL1).
The scheme has also been lodged with the Australian Securities and Investments Commission (ASIC) as of today.
Class Ltd develops and delivers cloud-based software solutions for the wealth accounting market in Australia. HUB24 is a wealth management solutions fintech.
At the time of writing, the HUB24 share price is $28.09, which is 3.58% higher than its previous close.
Let's take a closer look at this latest news on the acquisition.
HUB24 share price lifts on scheme booklet release
After the market closed yesterday, Class announced that the Supreme Court of New South Wales approved the scheme meeting that will see shareholders voting on its takeover by HUB24.
Today, the acquisition plan has passed another hurdle with the release of the scheme booklet, which also houses the thumbs up of an independent expert.
The expert found HUB24's part-cash, part-scrip offer values Class shares at between $2.85 and $3.03 – up to 34% higher than its true underlying value of $2.25 to $2.57.
They recommended all shareholders vote in favour of the takeover in the absence of a superior proposal.
Interestingly, the Class share price isn't sharing in HUB24's solid gains today. It is currently 0.77% higher than it was at yesterday's close, trading for $2.63.
HUB24 is offering 1 HUB24 share for every 11 Class shares held by investors. It will also be providing Class shareholders with 12.5 cents for each security they own.
At the time of the initial offer, the deal represented a 73% premium on the Class share price.
Class shareholders will have their say on the takeover on 31 January. At least 75% need to be in favour of the acquisition.
Major Class shareholder, Spheria Asset Management, owns approximately 19.99% of the company's stock and plans to vote 'yes'.
As long as all conditions are met, the companies expect the acquisition to go ahead in February.
