At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a strong gain. The benchmark index is currently up a sizeable 1.4% to 7,495.4 points.
Here’s what is happening on the ASX 200 on Monday:
Afterpay to be acquired by Square
The Afterpay Ltd (ASX: APT) share price is rocketing higher on Monday. This follows news that the buy now pay later provider is recommending a $39 billion takeover proposal by US payments giant Square. The Afterpay Board is recommending investors accept an offer of 0.375 shares of Square Class A common stock for each Afterpay share they hold. Based on the latest Square share price of US$247.26, this implies a transaction price of approximately $126.21 per Afterpay share.
Oil Search-Santos merger update
The Oil Search Ltd (ASX: OSH) share price is charging higher after its potential merger with Santos Ltd (ASX: STO) took a positive step forward. This follows news that Santos and Oil Search have reached an agreement on the merger ratio. Under the revised merger proposal, Oil Search shareholders will receive 0.6275 new Santos shares for each share held. This implies a transaction price of $4.29 per Oil Search share.
Pro Medicus shares fall on broker downgrade
The Pro Medicus Limited (ASX: PME) share price is sinking today after being downgraded by analysts at Goldman Sachs. According to the note, the broker has downgraded the health imaging technology company’s shares to a neutral rating with a $55.60 price target. Goldman Sachs made the move on valuation grounds after a strong period of share price performance.
Best and worst ASX 200 performers
The best performer on the ASX 200 on Monday has unsurprisingly been the Afterpay share price with a 24% gain. This follows the surprise announcement of its acquisition by Square. The worst performer has been the Pro Medicus share price with a 4.5% decline following the aforementioned broker downgrade.
The post ASX 200 midday update: Afterpay to be acquired by Square, Oil Search to merge with Santos appeared first on The Motley Fool Australia.
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More reading
- What is the outlook for the Afterpay (ASX:APT) share price?
- Who is Jack Dorsey and why is he buying Afterpay (ASX:APT)
- The Square (NYSE:SQ) share price has gained 80% over the last year
- Here’s why ASX tech shares are up 6% on Monday
- Santos (ASX:STO) share price rises on revised merger proposal
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Pro Medicus Ltd. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Pro Medicus Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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