ASX 200 drops, Afterpay jumps again, Credit Corp rises

The ASX 200 fell, however the Afterpay share price jumped again.
The post ASX 200 drops, Afterpay jumps again, Credit Corp rises appeared first on The Motley Fool Australia. –

The S&P/ASX 200 Index (ASX: XJO) fell today by 0.4% to 7,460 points.

Here are some of the highlights from the ASX:

Afterpay Ltd (ASX: APT)

The Afterpay share price surged another 12% today.

Readers may have seen yesterday that the US payments giant Square has proposed to buy Afterpay in an all-share deal for $39 billion.

Under the terms of the deal, Afterpay shareholders will receive a fixed exchange ratio of 0.375 Square shares for each Afterpay share.

Based on a Square share price of US$247.26 on 30 July 2021, that implied a transaction price of $126.21 per Afterpay share. But overnight the Square share price increased around 10% to US$272.38, increasing the value that Afterpay shareholders will receive if it were to stay at this price.

When Afterpay first announced the news, the Afterpay co-CEOs Anthony Eisen and Nick Molnar said:

By combining with Square, we will further accelerate our growth in the US and globally, offer access to a new category of in-person merchants, and provide a broader platform of new and valuable capabilities and services to our merchants and consumers. We are fully aligned with Square’s purpose and, together, we hope to continue redefining financial wellness and responsible spending for our customers.

It was the top performer in the ASX 200 today.

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price increased slightly after releasing its FY21 result.

It said that its FY21 net profit after tax (NPAT) increased by 11% to $88.1 million. The business reported a “strong” US segment result, with net profit doubling to $17.7 million.

The company pointed to a near record purchased debt ledger (PDL) investment outlay of $293 million. It also saw a record second half gross lending volume of $105 million.

Credit Corp said that it has a record committed starting PDL investment pipeline of $150 million for FY22.

The business will pay a final dividend of $0.36 per share.

Credit Corp said that charge off volumes are growing across all markets and the company anticipates further opportunities to grow purchasing over the course of the year.

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne share price dropped 6% today after announcing it had been served with a class action in the Supreme Court of Victoria.

It is being brought by Phi Finney McDonald for the plaintiff and on behalf of all people who bought shares between 24 November 2014 and 15 December 2016.

The proceedings alleges misleading or deceptive conduct and breaches of continuous disclosure obligations regarding alleged anti-competitive conduct in the US that has been the subject of investigations by the US Department of Justice and the Office of the Attorney General in the State of Connecticut.

The company will vigorously defend the proceeding, Mayne Pharma said it emphatically denies any and all allegations of wrongdoing.

The post ASX 200 drops, Afterpay jumps again, Credit Corp rises appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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. 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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