The Afterpay Ltd (ASX: APT) share price has largely been tracking the performance of Square Inc (NASDAQ: SQ) following its takeover announcement on 2 August.
While the transaction is anticipated to close in the first quarter of the calendar year 2022, fund managers are pointing at the possibility of a last-minute bid for the leading buy now, pay later (BNPL) company.
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Is there another plot twist for the Afterpay share price?
Ophir Asset Management's Andrew Mitchell told the Sydney Morning Herald (SMH) today that "bigger players such as PayPal or Apple could still pounce on Afterpay", putting the odds of this happening at "about 50:50".
"Arguably the best player in the industry is up for sale, and they'll have to work out: Is this a one-off opportunity we're going to get to make a large play into this? Is this a defensive play that we need, otherwise it's going to hurt us in the future?"
Joining Mitchell's view of a potential rival bid was Citi analyst Siraj Ahmed, who said he "would not be surprised if there were another bid for Afterpay, albeit from a 'limited' list of potential suitors, such as fintechs or online shopping platforms".
The SMH article also drew commentary from Jefferies analyst Roger Samuel, who said a competing bidder from the US "looked unlikely, but there was a small possibility Dutch payments business Adyen would take a look".
What's next for Afterpay?
Afterpay has said that its shareholders do not need to take any action at this stage.
The company advised that a scheme booklet containing information in relation to the transaction would be sent "in due course". The booklet would include reasons for the Afterpay board's recommendation, an independent expert's report and details of the transaction scheme.
Both Afterpay and Square will be busy with getting a number of approvals and paperwork across the finish line.
This includes Square seeking approval for the quotation of new shares on the New York Stock Exchange and a planned CHESS Depositary Interest (CDIs) on the ASX.
In addition, Afterpay will be required to liaise with the Australian Taxation Office to ensure the transaction can be executed on a tax-free basis for its Australian shareholders.
