Rather than receiving cash, Afterpay shareholders will receive shares in Square as consideration for the sale. Afterpay shareholders will receive a fixed ratio of 0.375 shares of Square shares for every 1 Afterpay share held. For example, if you own 400 shares in Afterpay you will receive 150 shares in Square.
Will Afterpay keep rising?
The shareholders of Afterpay will own close to a fifth of Square if the deal goes ahead. Based on Square’s closing price of US$247.26, the deal represented an implied price of $126.21. … So that means that Afterpay shareholders will also get more value from the deal and hence why the Afterpay share price is still rising.
What did Afterpay sell for?
This formula valued Afterpay at $39 billion, or $126 a share. Square shares have since jumped 14 per cent to a record high, raising the deal value to $44 billion.
Afterpay’s share price decline
The Afterpay share price has been falling since the middle of February 2021 when market concerns about inflation and interest rates intensified. … There’s also the fact that interest payments are one of Afterpay’s biggest expenses, a higher interest rate would mean a higher expense.
Is it worth investing in Afterpay?
Validation a good sign for Afterpay shares
It has been a market darling for much of its existence since its initial public offering (IPO) in 2017. In the space of four short years, Afterpay has delivered 4,187% in returns to investors. That works out to be a compound annual growth rate (CAGR) of 142.1%.
Is Afterpay a buy now?
While it might be easy to transfer Afterpay shares to Square CDIs, they are fundamentally different businesses, Herzog says. Afterpay is a fast-growing buy now, pay later company that is just penetrating the US market after establishing itself in Australia.
What will Afterpay be worth?
Afterpay’s Nick Molnar (left) and Anthony Eisen. On Monday, United States payments giant Square announced that it intended to acquire Australian buy now, pay later company Afterpay, in a deal worth an expected $39 billion. Afterpay’s product will be rolled into Square’s own app and offered to its millions of merchants.