The Afterpay Ltd (ASX: APT) share price won't be trading on the Australian share market for much longer.
This follows the release of an update on its takeover by Block Inc (NYSE: SQ) (previously named Square) this morning.
Image source: Getty Images
What was announced?
This morning Afterpay announced that Block has received approval from the Bank of Spain for its takeover of the buy now pay later giant.
This means that the takeover is now fully unconditional and will be implemented without the need for further shareholder or court approval in accordance with the implementation timetable.
Afterpay's Chair, Elana Rubin, commented: "Afterpay, its leadership and team have shown that groundbreaking fintech innovation built in Australia can reach global proportions. The team are incredibly excited at the prospect of beginning an extraordinary next phase with Block, Inc. and look forward to implementation on 1 February 2022."
"On behalf of the Board and management, thank you to our shareholders, customers, merchants, broader stakeholders and regulators, for recognising the potential of this incredible company and for sharing in the vision of fairness and financial freedom for all," she added.
What's next?
With this approval now received, Afterpay shareholders will have a decision to make if they haven't done so already.
By 17 January, shareholders will need to decide whether they want to receive US-listed Block shares or new Block CDIs listed on the Australian share market. The latter is the default option for local investors if no decision is made.
Two days later on 19 January, the Afterpay share price will be suspended from trade at the close of play.
After which, the following day, Block's CDIs will commence trade on the Australian share market under the ticker SQ2 on a deferred settlement basis. Finally, on 2 February, SQ2 shares will commence trading on a normal settlement basis.
