Square’s Afterpay deal lights up tech sector

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)

---

Disclaimer

Equity Trustees Limited (“EQT”) (ABN 46 004 031 298), AFSL 240975, is the Responsible Entity for the Insync Global Quality Fund and the Insync Global Capital Aware Fund. EQT is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT). This information has been prepared by Insync Funds Management Pty Ltd (ABN 29 125 092 677, AFSL 322891) (“Insync”), to provide you with general information only. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. Neither Insync, EQT nor any of its related parties, their employees or directors, provide and warranty of accuracy or reliability in relation to such information or accepts any liability to any person who relies on it. Past performance should not be taken as an indicator of future performance. You should obtain a copy of the Product Disclosure Statement before making a decision about whether to invest in this product.