I would have thought that with an additional cash pile through Touchcorps balance sheet driving loan growth, the opportunistic nature of the timing of the takeover and the overhang of the 30% equity stake held by Touchcorp in AFY now gone, the valuation would have been supported by fundamentals, particularly given the strong retail sales figures released last week.
Nevertheless, Im a Touchcorp holder who now owns APT- I expect management to quickly implement the synergy benefits they have flagged and elucidate the strategy for the combined business particularly the Touchcorp technology business that doesnt seem that synergistic with a loan business. Given the Touchcorp board rejected a takeover offer for the Touch business prior to merger and there was a pipeline of projects being muted particularly with a large retail player in the EU we expect the Touchcorp director now on the APT board, particularly Mike Jefferies, to deliver what they have promised shareholders who approved the merger.
APT Price at posting:
$2.93 Sentiment: None Disclosure: Held
