Money
Square shareholders back Afterpay takeover
Square shareholders have approved new shares for the US company’s $29 billion purchase of AfterPay
The $39 billion takeover of Afterpay has cleared a key hurdle, after shareholders in the acquiring company Square approved the plan to snap up the ASX-listed buy now, pay later giant.
It brings Australia’s largest buyout a step closer to fruition.
The purchase by Square shows the growing popularity of an industry that has upended traditional consumer credit.
Afterpay says the first court hearing for the deal was expected later this week. The company believes the acquisition was likely to close in the first quarter of next year.
Its shareholders are set to receive nearly 0.4 of Square Class A stocks for each unit held.
The next stage will be for AfterPay shareholders to vote on a scheme of arrangement.