Biggest takeover in Australian history | Afterpay (ASX:APT) Reporting Results

Jessica Amir
August 2, 2021

Australia’s biggest tech company Afterpay (ASX:APT), is set to be taken over by US payment giant, Square. APT also released preliminary FY21 results to the market. Here’s what you need to know.

Square has offered to takeover Afterpay for $39 billion (US$29 billion), making it the biggest takeover in Australian history. The offer values APT at $126.21, which is 31% higher than its closing price on Friday 30th July, of $96.66.

The Square – Afterpay transaction is expected to be completed by Q1 2022, subject to regulatory approval, as well as APT and Square shareholder approval.

APT shareholders are set to receive 0.375 shares in Square, for every APT share they own.

APT will delist once the acquisition is completed. APT shareholders will account for approximately 19% of Square’s share ownership.

APT reported sales rose 101% to $22.4 billion in the financial year ending 30 June 2021.

APT group revenue rose 88% to $978 million. Gross profit rose 84% to $875 million, compared to the same time last year.

APT underlying sales in the US rose 175% and UK sales rose 242%, compared to FY20.

APT shares jumped 21% after today’s takeover announcement.

APT’s share price is down 1% this year, pulling back from $160.

APT is a BUY stock for Macquarie ($130 target), Morgan Stanley and Credit Suisse ($145 target respectively). APT is a UBS SELL stock ($42 target).

Weekly Wrap 3 December

Sophia Mavridis
December 3, 2021

Morning Bell 2 December

Paulina Peters
December 2, 2021

Morning Bell 1 December

Sophia Mavridis
December 1, 2021

Morning Bell 30 November

Paulina Peters
November 30, 2021

Morning Bell 29 November

Sophia Mavridis
November 29, 2021

Weekly Wrap 26 November

Sophia Mavridis
November 26, 2021

Morning Bell 25 November

Paulina Peters
November 25, 2021

Morning Bell 24 November

Sophia Mavridis
November 24, 2021

Morning Bell 23 November

Paulina Peters
November 23, 2021

Morning Bell 22 November

Sophia Mavridis
November 22, 2021

Weekly Wrap 19 November

Sophia Mavridis
November 19, 2021

Morning Bell 18 November

Paulina Peters
November 18, 2021