I think it's a bad deal, but unsure that's a good reason for the Treasurer to block it.
Square plans to acquire Afterpay for approximately US$29 billion worth of stock. This means Afterpay shareholders will receive a fixed exchange ratio of 0.375 shares in Square Class A common stock for each Afterpay share they hold on the record date. Square may elect to pay 1% of total consideration in cash. Based on Square’s last closing price of US$247.26, this values the Afterpay share price at approximately $126.21, a premium of approximately 30.6% to its last closing price of $96.66 on Friday. If successful, Afterpay shareholders are expected to own approximately 18.5% of the combined company.
But Afterpay was $160.05 in February this year. The company’s shares have since been volatile sure, but there is a huge take up in the online market with major players like Ebay. Afterpay replaces older products and older online buyers and the budget conscious love it.
I wouldn't be surprised if it had a $300 billion market cap in 5 years.
