Square’s Afterpay deal lights up tech sector

Updated: Sep 28, 2021

by Tom Richardson and Jessica Sier

Aug 2, 2021 – 11.45am

Square’s $US29 billion ($39 billion) all-scrip bid for Afterpay lit a fire under the wider buy now, pay later and tech sectors on Monday morning as analysts scrambled to update valuations and short sellers faced heavy losses.

Analysts said the market’s discount reflects the uncertainty around an all-scrip bid not due to close until the first quarter of 2022.

The idea of just getting Square stock might be a problem for a lot of Australian fund managers who can’t hold foreign stocks," "said John Lobb portfolio manager at Insync Funds Management.

“That’s why it’s trading at a discount to the actual bid because there would be quite a few of them.”

Read the full article in AFR (paywall may apply)

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