Ann: Ceasing to be a substantial holder, page-19

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01/03/22

22:51

Post #: 59912505
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Originally posted by Marvin_Mindreader: ↑

Talk about rubbish. What about the part of the 4C where they said the March Quarter was likely to be cash positive? You are either intentionally being completely misleading, or just don't bother with looking at any detail.

It is pretty clear that Perennial selling out has been the big impact on the share price decline. You've seen them do this before and when they stop selling the shares usually bounce back.

And seeing recent news from OpenPay and Zip about the UK, with OpenPay effectively pulling out completely, and Zip reducing capital allocation, actually shows that it is harder to build a business in a market where there are already a few larger players. This makes the growth that Laybuy has managed to achieve in the UK even more impressive.

It would be very unusual for Zip to shut down the UK as that impacts their Europe opportunity. So it would seem the only real way for Zip to progress is to acquire the UK. Realistically it would be an all scrip deal (like Sezzle was), and would be less than 10% dilution (I reckon between 5-10%). This would give them a decent opportunity in the UK. There would be fairly large cost synergies available from the merger. Zip would also become #1 in the profitable NZ market.

I suspect Zip wanted to consolidate in the US first, but UK is the next logical step, and Laybuy is the only logical party for them to acquire.

Cheers
Marv

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Cash flow positive is a dream for BNPL. Good luck if you believe it. The UK losses are huge and any profit would be a major shock to the system.

No capital raising and this will most likely continue its decline.

LBY Price at posting: 10.0¢ Sentiment: Sell Disclosure: Not Held
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Ann: Ceasing to be a substantial holder, page-19

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