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You are missing that you can now add a few below 90p!
How come still 2:1 sellers v Buyers and price continues to drop. What am I missing?
yup, all on track and with Spanish approval expected January it will be interesting to see Square opening bid for TSL stake...and with TSL under no pressure to accept an offer at this stage it appears TSL are in a great position....waiting a few months could see further increases in sp etc so it would not be unrealistic to expect a premium if early settlement :-)
Buy now pay later firm Afterpay Ltd (APT.AX) said on Tuesday its $29 billion buyout by Block Inc (SQ.N), previously known as Square, got overwhelming support from shareholders, with 99.79% of the proxy votes cast in favour of the deal.
https://www.reuters.com/markets/deals/afterpay-gets-shareholder-nod-block-inc-buyout-majority-proxy-votes-favour-deal-2021-12-13/
"But the APT share price is now back to where it was (1% above) pre Square/Block offer"
Share Price: 21 July 2021 / 10 Dec 2021
Square: $247 /$181 -26.7%
AfterPay: AUD 126 / AUD 96 -24.0%
In comparison other BNPL company share prices have decline ~30%
But the APT share price is now back to where it was (1% above) pre Square/Block offer
Many thanks Carcosa61
Of no consequence for share holders. Just a realignment following the capital reduction.
Although from the figures you can work out the conversion rate of 1.8332p/share for the capital and dividend payment which should start hitting your accounts from today, if you were eligible.
Could anyone out there give a quick explanation of what this means to shareholders here?
nice to see the TSL board issue a no reason drop rns, and quickly too....with a potential 50% plus upside on known knowns, for once, the market is currently offering an opportunity for investors with risk to the upside.....
https://twitter.com/surprised_trade/status/1468154603409756163
RNS confirmed TSL know of no reason for the price drop either.
I was delighted to buy more this morning at a cheeky price :)
It's now back to 95p which is still cheap imo.
And at this point we will know the value of CP and if Thinksmart's stake is included. I know the answer is yes I just wanted to check
ThinkSmart Limited (AIM: TSL), a specialist digital payments platform business, notes the volatility in its share price today and confirms that it knows of no reason for the movement.
ThinkSmart also notes the announcement made today by Afterpay Limited (ASX: APT) that the Afterpay shareholder meeting to approve the acquisition by Square, Inc. (NYSE: SQ) will now take place on 14 December 2021 and the Bank of Spain approval for the takeover will now be a condition subsequent to the takeover becoming effective and binding on Afterpay shareholders if approved by shareholders on 14 December and by the Supreme Court of New South Wales ("Court") on 17 December 2021. The acceptance by the Supreme Court of New South Wales of the Bank of Spain approval becoming a condition subsequent is seen as a positive step.
Just so I understand the order of events here as I want to double check a couple of things. Afterpay vote will happen by the end of December. The Bank of Spain is likely to approve in Jan. At which point to we get clarification that they will buy Thinksmart's 10% and for what value. I appreciate that might be an obvious question but I'm trying to understand the short timescales and also the reason for the drop. I believe Clearpay's UK progress may have slowed, I regularly check the shop directory and they don't appear to have benefited from getting any large retailers online recently. With regards to why Square would need Clearpay I know they noted they were impressed by their customer acquisition numbers but also if they want merchants Clearpay has been very successful in establishing a number of SME businesses in the UK. I think the market has presented a great opportunity today.
But not me. He who snoozes …..
how valuable is that going to be to Square ?.....
''Even before Square Financial Services went into operation in March, Square had been giving merchants small loans, using its detailed knowledge of transaction volumes to help approve applications quickly. These loans, though, were disbursed through a partnership with another, existing bank; in a 10-K filing, Square revealed it collected on these loans by automatically deducting a fixed percentage of every card payment a merchant accepted. In this way, Square had disbursed nearly $9 billion in loans before its small-business loan and banking functions came on line.
To that ability to give merchants loans, Square now adds Afterpay’s service of giving customers credit—a step closer to becoming a full-fledged retail bank in all but name.''
https://qz.com/2041201/square-bought-afterpay-because-it-really-wants-to-be-a-bank/
all the recent news re bnpl is regarding their popularity and takeovers etc..in addition bnpl firmsare moving into banking areas and see future growth in those areas too....xmas period should eually see a decent rise in use/profits for clearpay and although it's in squares interest to go for a deal quickly TSL have the option to hold on for the best deal or square to offer a premium for their stake if they don't want to wait, either way from my understanding TSL have positioned themselves nicely and are under no pressure to sell for less, they have a valuable stake that will only grow over time ...
The only reason I can see for the drop is the general decline in the BNPL companies valuations in last couple of months. The updated Afterpay scheme published today notes that Square share price has fallen nearly 30% in that period, and the acquisition price will be lower (the letter from the independent expert expressly said that as a result of market conditions they believe the price of Afterpay has declined 20% at least). This doesn't really help Thinksmart if they are trying to negotiate the valuation of their stake in Clearpay with Afterpay - which presumably means it could become a drawn out affair. Would really like to see some trading updates from Afterpay to judge if Clearpay has continued to increase its relative percentage contribution.
Unless its leaky and someone has knowledge of the progress (or lack of) on the negotiations or an institution is reducing.
Simon T is on holiday now until 5th January, expect him to do an interesting update upon his return as this SP doesn't make any sense to me.
GLA
The takeover is expected to conclude on 18 January 2021 at which point Afterpay has the right (on change of control) to exercise its call option early to purchase ThinkSmart’s 10 per stake in Clearpay,. The valuation methodology is based on key financial metrics as well as the market capitalisation of Afterpay.
Frankly, it would be irrational for Afterpay not to exercise the call option early as the cost of buying out ThinkSmart can only rise in future given that Clearpay’s growth is likely to accelerate as part of the Square and Afterpay combined business. Importantly, any buy-out of ThinkSmart’s stake will now have to be made in cash.
the 10 per cent stake in Clearpay is held on the Aim minnow’s balance sheet at £125m (117p a share) after applying a 17.5 per cent liquidity discount and a 35 per cent further discount to take account of shares subject to an employee share option plan. Thinksmart’s valuation is more than justified given that in the 2020/21 financial year Clearpay accounted for 35 per cent of Afterpay’s cash profit
ThinkSmart’s fully diluted stake in Clearpay is still worth £151m (142p share) after adding back the 17.5 per cent liquidity discount applied in the June valuation.
ThinkSmart’s legacy finance leasing business continues to generate cash, so much so that the board is returning A$5.6m (about 2.85p a share) of its A$13m (6.5p a share) cash pile to shareholders next month. The company has £2.5m (2.4p a share) of receivables on its balance sheet,
ThinkSmart’s sum-of-the-parts valuation is 151p a share with the valuation risk weighted to the upside. More importantly, Afterpay’s imminent change of control could lead to a major liquidity event to turn ThinkSmart’s valuable holding in Clearpay into cash.
Hi Soozed, that FT article was a year ago and the FT that is also the Investors Chronicle has a somewhat positive view today ;-)
That's from December 2020
https://www.verdict.co.uk/squares-afterpay-buy-okd-bnpl-players-rapidly-becoming-like-paypal/
Square’s acquisition of Afterpay also marks a trend where big financial players are muscling into the BNPL sector and existing BNPL providers are responding by expanding their own offering outside instalment services.
Cathie Wood Buys More Square Shares....
https://www.benzinga.com/markets/cryptocurrency/21/12/24423507/cathie-wood-trims-another-49-4m-from-coinbase-stake-and-buys-more-square-shares-amid-crypt
Ft big headline Thinksmart and afterpay the price is wrong
Not sure if link works
https://amp.ft.com/content/91db3d6e-cfa1-450d-bee4-7fa09e5907c0#
nope, no news in public domain, in fact all news is positive and square sp which isa e key factor remains unchanged....they are awaiting the eu/spain approval that should be through in January 2022 and currently all is on track as far as I can see....we have been here before with a dramatic drop, stops collected and price rallies back up again....if all goes as forecast and TSL stake is valued around the 140p to 160p area, there is a substantial profit to be made from current levels....markets. mm's , iii's like to test the resolve at times....divi pymnts due tomorrow and TSL is in an ideal situation on current forecasts to strike a very decent deal for shareholders on present valuations and as stated before any delays are to TSL holders advantage as bnpl pymnts grow, particularly over xas period etc.....