SYDNEY, AUSTRALIA: Afterpay Limited confirmed that Square Inc. stockholders have approved the issuance of Square Class A common stock (including the shares underlying CHESS Depositary Interests) (New Square Shares) to Afterpay shareholders as contemplated by the Scheme Implementation Deed entered into between Square, Lanai (AU) 2 Pty Ltd and Afterpay announced on 2 August 2021.
Jack Dorsey is the co-founder and CEO of Square Inc.
As set out in the Scheme Implementation Deed, a condition precedent to the transaction between Square and Afterpay is the approval by Square stockholders of the issue of New Square Shares in connection with the Scheme. This condition is now satisfied.
The transaction has an implied value of approximately US$29 billion (A$39 billion) based on the closing price of Square common stock on July 30, 2021, and is expected to be paid in all stock.
The acquisition aims to enable the companies to better deliver compelling financial products and services that expand access to more consumers and drive incremental revenue for merchants of all sizes.
Afterpay advises that the first court hearing will be held today and the Scheme Booklet is expected to be released tomorrow, Friday, 5 November 2021, subject to court approval and following registration with the Australian Securities and Investments Commission. Afterpay expects the transaction will close in the first quarter of 2022.