The Afterpay Ltd (ASX: APT) share price has continued to rally higher following its $39 billion takeover proposal from Square Inc (NYSE: SQ) on Monday.
At the time of writing, shares in the leading buy now pay later giant have added another 12.23% to $128.86 and up an astonishing 33.5% this week.
Get used to the Square and Afterpay share price moving together
The Square and Afterpay share prices are now intrinsically linked together following the takeover proposal.
The terms of the takeover is an all-scrip offer, where Afterpay shareholders will receive a fixed exchange ratio of 0.375 Square shares for each Afterpay share they own on the record date.
While the exchange ratio is fixed, the Square share price is the variable that could continue to move Afterpay, moving forward.
Square jumps 10% overnight
Square shares rallied strongly overnight in response to its Afterpay takeover proposal.
The Square share price rallied as much as 13.60% intraday to a near all-time high of US$280.88.
By market close, the company’s shares closed 10.16% higher to US$272.38.
The rally also witnessed significant volumes, with approximately 45.73 million shares changing hands, compared to Square’s 10-day average of approximately 10.74 million.
At a closing price of US$272.38, this would imply that one Afterpay share is worth US$102 or A$138.49.
Signs of life in the BNPL sector
The surging Afterpay share price appears to be bringing life back into the BNPL sector, with gains across the board.
Overnight, the Affirm Holdings Inc (NASDAQ: AFRM) share price rallied 14.90% to US$63.71.
While the likes of Zip Co Ltd (ASX: Z1P) and Sezzle Inc (ASX: SZL) have rallied 15.21% and 5.13% in the last two days.
Even smaller, beaten up BNPL players such as Openpay Group Ltd (ASX: OPY), Laybuy Holdings Ltd (ASX: LBY) and Splitit Ltd (ASX: SPT) have jumped 8.42%, 15.12% and 10.87% respectively.
The post Up another 12%, why the Afterpay (ASX:APT) share price keeps pushing higher appeared first on The Motley Fool Australia.
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More reading
- ASX 200 midday update: Afterpay jumps again, Qantas stands down crew
- Afterpay share price surges on takeover. Oil Search, Santos do a deal. Scott Phillips on Nine’s Late News
- Here are 4 sure-fire ways to catch the next 10-bagger
- Square up 10%. What does this mean for the Afterpay (ASX:APT) share price?
- Why the Afterpay (ASX:APT) share price can still rise (and fall) after the Square deal
Motley Fool contributor Kerry Sun 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, Affirm Holdings, Inc., Square, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. 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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