ThinkSmart to trade its remaining ClearPay shares for £85m stake in Block
Shareholders will cast the deciding vote on 14 January.
The all-stock deal, which is subject to shareholder approval, will see ThinkSmart receive 1.65m shares in AfterPay, which itself is set to be acquired by US payments giant Block (formerly Square) in early 2022.
ThinkSmart’s board yesterday published details of the deal, which they believe will ultimately equate to around £84.6m in value, including £78.1m worth of Block shares.
“We believe this outcome provides our shareholders with an opportunity to continue the exciting Afterpay journey now directly with Block and we as a Board see continued long term value accretion with this outcome,” said ThinkSmart’s executive chairman Ned Montarello.
Given the deal is subject to a shareholder vote at ThinkSmart’s AGM on 14 January, the company’s share price movement yesterday wasn’t very reassuring.
Its stock fell 14 per cent to around 69p on London’s AIM sub-market, suggesting a market valuation of around £74m on the firm.
The likely implication is that a number of shareholders are unhappy with the terms of the all-stock deal, which pre-empts AfterPay triggering its own all-cash call option to buy ThinkSmart’s stake, which it would have been able to do given its upcoming change in ownership.