You are operating under the absurd assumption that one APT share is actually worth 0-.375 SQ shares (~AUD139 at current exchange rates). In fact it about 10x too high.
SQ are offering 0.375 shares per APT share. In other words they are swapping 37.5% of the company for a loss making company with no real assets.For that dubious 'privilege' SQ will acquire millions of loss-making customers, increase revenue by a negligible 4%, increase debt by ~25% and wipe out any of their EBITDA 'profits'.
The euphoria lasted about two days before SQ holders realised the proposed deal was complete and utter s***. If you think this offer will be approved by SQ institutional shareholders you have rocks in your head.
APT Price at posting:
$133.00 Sentiment: Sell Disclosure: Not Held
