Hi All i don,t hold but this info is coming up on my comsec platform hopefully it helpsAfterpay Ltd (ASX: APT) is being acquired by US company, Block, Inc. (NYSE: SQ)
On 2 August 2021, US based company Block, Inc. (Block) (formerly known as Square, Inc.) announced plans to acquire Australian fintech Afterpay Ltd (Afterpay).
What does this acquisition mean?
Block and Afterpay have entered into aScheme Implementation Deedunder which Block has agreed to acquire all of the issued shares in Afterpay by way of aScheme of Arrangement.
What will happen with my Afterpay shares?
Afterpay shareholders will receive a fixed exchange ratio of0.375 shares of either New Block Shares or New Block CHESS Depositary Interests (CDIs) for each Afterpay ordinary sharethey own.
In the event of fractional entitlements from this exchange:
> If the fractional entitlement is < 0.5, it will be rounded down to 0 New Block or New Block CDI.
> If the fractional entitlement is > 0.5, it will be rounded up to 1 New Block Share or New Block CDI.
Block has agreed to establish a secondary listing on the Australian Securities Exchange (ASX)to allow Afterpay shareholders to trade Block shares viaCHESS Depositary Interests (CDIs)on the ASX.
> Eligible Australian and New Zealand Afterpay shareholders had the option up until 17 January 2022 to elect to receive Block, Inc. shares listed on the NYSE instead of ASX listed Block CDI's. Where no election was made these shareholders would receive ASX listed Block CDI’s which can be traded through their CommSec Account.
> No election options were available for Non-Australian and New Zealand shareholders, and they will either receive Block, Inc. shares listed on the NYSE or cash payments depending on the foreign jurisdiction in which they reside.
> If you receive Block, Inc. shares listed on the NYSE, they can be held and traded on a CommSec International trading account.
> You can open a CommSec International trading account and transfer your shares by:
- 1. Applying for a CommSec International account in the same name as the Block shares.
- 2. Obtaining the Direct Registration Statement (DRS) – these are due to be dispatched by Computershare on Thursday, 20th January 2022.
- 3. Completing the ‘Account Transfer Form’ and returning it to [email protected]. The form can be obtained on our website by logging in and navigating to Help > Forms & Brochures > International > Account Transfer Form.
Please consider the relevantDisclosure Documentsbefore making any decision about these products and services.
Table of Key Dates1
19 January 2022
Afterpay Shares suspended from trading. This was the last day that Afterpay Shares traded on ASX.
1 20 January 2022
Commencement of trading of New Block CDIs on ASX under the symbol SQ2 (deferred settlement basis).
2 7:00pm on 21 January 2022
Record Date– determination of entitlement of Scheme Shareholders to receive the Scheme Consideration.
3 1 February 2022
Implementation Date– all Scheme Shareholders will be provided with the Scheme Consideration to which they are entitled on this date.
4 2 February 2022
Holding statements or confirmation advice for New Block CDIs will be dispatched.
Commencement of trading of New Block CDIs on ASX under the symbol SQ2 (normal settlement basis).
Commencement of cross-border conversions of New Block Shares and New Block CDIs between Australia and the US.
Commencement of trading of New Block Shares (and Block Class A shares underlying any New Block CDIs) on NYSE.
5 3 February 2022
DRS statements for New Block Shares will be dispatched.
1These dates are correct as at 20 January 2022.
What do I need to do now?
Please familiarise yourself with theScheme Bookletwhich contains information in relation to the Transaction, reasons for the Afterpay Board of Directors’ recommendation, an Independent Expert’s Report and details of the Transaction Scheme. This booklet can be found under Afterpay company announcements on the CommSec website (see below for details on accessing announcements).
Where can I get more information?
As more information on the acquisition becomes available, Afterpay will keep the market and shareholders informed via market announcements. To access the announcements:
- 1. Login to the CommSec website
- 2. Enter ‘APT’ in the ‘Search CommSec’ box and press enter
- 3. Select the ‘Announcements’ tab to view the latest announcements
