Good Day Folks,
Does anyone know on what may happen if a company listed on ASX gets acquired or merged with another company's share listed? Just trying to get my head around various possibilities.
I happened to hold few units of shares for both Sezzle and Zip (BNPL platforms) and have been following the possibility of Sezzle getting acquired or merged.
If it helps, I am already loosing by:
SZL: -63.96%
ZIP: -62.85%
Any inputs are much appreciated.
Cheers
It all depends upon the terms of the acquisition.
Your existing shares may be swapped in some ratio for shares in the acquiring entity, you may be paid cash, or a combination of both.
Impossible to predict, but it will be one of the above three options.
Read the proposal from asx announcement
OP, make sure you understand that the board will always look after their best interest first before yours.
They will put forth a recommendation that will ensure that they get the cream and the shareholders get the scraps of the table.
Yup I feel sorry for 5GN holders when it merged with WCG. Or CRW getting purchased only 12 months after listing at bargain price. Honestly stocks aren't that great…
Cashrewards was scam and still is. The founder used social media to sell the platform. They even gave an ozb a job to pamp the brand.
All of this was to build up the brand to issue an IPO and damp it like a tonne of 🧱 on retail investors.
Can vary between the two extremes:
1) Cash an no shares
2) Shares in new company and no cash
Cash above is money that is paid the the owner of the shares. The tax implications on the amount transferred can also vary from a fully franked amount to am amount with no franking credits.
I have been through a bunch of merges and acquisitions for one share I have owned and the only control you have is if they ask if you want them to sell any shares as this will allow you to exit without paying any fees on the sale in 99% of cases.
My only comment is that a takeover eliminates any possibility your shares will regain the levels you paid, if you are underwater.
It entitles you to a free membership to asx bets
ZIP going broke if it get Sezzle it will compounding its problem and fasten its demise
what made you buy these shares?
The board will give their opinion to shareholders as to if it is a good deal to sell or not. The shareholders will then vote. The price is generally at a 20-40% premium to the market.
After sale goes through the shares will no longer be traded on the market and after the agreed date the money for your shares will be deposited into your nominated account.