Ann: Touchcorp receives non-binding indicative proposal, page-4

Well well - this is concerning:
"the sale of the Company's technology to a third party while Touchcorp shareholders remain exposed to the value of Afterpay shares would give rise to significant risks which would adversely affect TCH shareholders ...(the Afterpay shares are subject to ASX escrow until 3 May 2018.)"


I.e. a new (different) owner may:
- pull the rug out from under AFY, unlikely as AFY would have set contractual obligations with TCH. (but in the long term, create upheaval to the AFY business model and negatively impact AFY SP)
- conversely mean AFY is free to change the technology platform away from TCH. (impacting both AFY and TCH).

The paragraph is intriguing as TCH shareholders are already exposed to significant changes in the AFY share price until May 2018. This is a risk that TCH holders know, and are happy to bear currently.

The issue here is whether the offer received is well in excess of $1.50 per share, in which case TCH holders are being dudded by their own board. If the offer is materially above $1.50 per share, the board should consider any premium over $1.50 when setting the equity issue and swap between the two companies. AFY holders need to contribute their fare share, rather than getting a free lunch on TCH holders.

Hiding behind confidentiality and the smoke screen of business risks is a cop out. Hopefully there will be a counter offer and these details can be fleshed out.

Cheers