The Hub24 (ASXL HUB) share price won’t be going anywhere today after the company requested a trading halt this morning. Here’s the lowdown.
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Hub24 Ltd (ASX: HUB) shares won’t be going anywhere today after the company’s request for a trading halt this morning. At yesterday’s market close, the Hub24 share price finished the day 2.79% higher at $26.51?
What did Hub24 announce?
Prior to market open this morning, Hub24 requested its shares be placed in a trading halt.
According to its press release, Hub24 requested the trading halt pending a further announcement relating to its proposed acquisition of Xplore Wealth Ltd (ASX: XPL).
Hub24 advised that Xplore will release an announcement concerning the outcome of its share scheme meeting scheduled to occur later today.
Hub24 shares will remain in a trading halt until Xplore’s announcement or until the commencement of trading on Monday 15 February. Xplore shares are also in a trading halt today.
Hub24 potential acquisition of Xplore
Late last year, Hub24 initiated a takeover bid for its ASX-listed rival Xplore Wealth.
Under the initial offer, Hub24 offered Xplore shareholders 20 cents per share, comprised of 50% cash and 50% Hub24 shares. The proposal also included an option to receive all cash or all shares, subject to certain limits.
As a result, the initial offer was estimated to be worth around $60 million.
According to Hub24, the strategic acquisition would ensure it remains a leading provider of integrated platforms, data, and technology services.
How has the Hub24 share price been performing?
Prior to the trading halt, the Hub24 share price was trading near all-time highs, after surging more than 140% over the last 12 months.
Late last month, Hub24 shares received a boost after the company reported a promising FY21 second quarter and half-year update.
The wealth management technology company reported record inflows to its investment platform. For the period October to December 2020, investors ploughed $1.7 billion into the company’s flagship wealth platform, a 37% improvement year on year.
As a result, Hub24 currently has a pool of funds under administration (FUA) of around $31 billion. In addition, the company saw average monthly flows of $514 million, up from $412 million in the year ended 30 June 2020.
According to Hub24’s management, the company has been benefitting from the negative narrative surrounding big banks.
Based on the current Hub24 share price, the company commands a market capitalisation of nearly $1.8 billion.
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Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.