By Joe Hoppe

 

Thinksmart Ltd. said Tuesday that after its proposed Clearpay sale to Afterpay Ltd., the consideration shares it will receive won't be reduced for employee stock ownership plans.

The U.K. digital-payments platform, which said Monday that it will sell its remaining 10% stake in Clearpay to Afterpay in exchange for 1.65 million Afterpay ordinary shares, said the shares won't be reduced under the Clearpay ESOP nor under the original share purchase agreement it made with Afterpay in August 2018.

Any options granted for the ESOP will instead be satisfied through Afterpay allotting new shares.

The company said Monday that the 1.65 million shares have a market value of 73.4 million pounds ($96.9 million), and the deal is expected to complete in the first quarter of 2022.

"We believe this outcome provides our shareholders with an opportunity to continue the exciting Afterpay journey now directly with Block and we as a board see continued long term value accretion with this outcome," Executive Chairman Ned Montarello said.

Shares at 0949 GMT were down 5.5 pence, or 8.7% at 5.5 pence.

 

Write to Joe Hoppe at joseph.hoppe@wsj.com

 

(END) Dow Jones Newswires

December 21, 2021 05:12 ET (10:12 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
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