Is the Amaysim (ASX:AYS) share price really tumbling 70% today?

The Amaysim (ASX:AYS) share price seems to have plummeted today as the company approaches its takeover by WAM Capital. What’s happening?
The post Is the Amaysim (ASX:AYS) share price really tumbling 70% today? appeared first on The Motley Fool Australia. –

asx shares delisting represented by goodbye sign

The Amaysim Australia Ltd (ASX: AYS) share price looks to have been plummeting today, but things aren’t always what they seem. The drop comes after yesterday’s close, which saw an end to the final day shareholders were entitled to receive a major distribution.

Amaysim is set to delist at the close of trade tomorrow, having previously sold off the majority of its business and then been taken over by WAM Capital Limited (ASX: WAM).

At the time of writing, the Amaysim share price has dropped by 69.18% and is trading at 24.5 cents.

Let’s look closer at what’s happening with the Amaysim share price today. 

Last hurrah for Amaysim shares 

The Amaysim share price seems to have dropped momentously as those shareholders awaiting the company’s ex-dividend date cut and run. But the reason for the large fall is that a significant part of Amaysim shares’ remaining value was made up of the juicy dividends resulting from the company’s sale and takeover.

Those who held shares in Amaysim at the close of trade yesterday will receive a fully franked dividend of 26 cents and a return of capital of 24 cents in late April.

They will also receive a minor distribution of approximately 10 cents in around May, as well as a final distribution of between 7 and 13 cents around October.

As a result, the Amaysim share price has fallen by 55 cents – a similar amount to what investors were guaranteed to receive. Given the value of these distributions was already priced into the Amaysim share price, it is now trading minus the approximate value of these payments.  

In late February, Amaysim announced the remainder of its business was being taken over by WAM Capital. This came following Amaysim having previously sold its energy business to AGL Energy Limited (ASX: AGL) and its mobile business to Optus Mobile

Previously, WAM Capital offered 70 cents in cash for each Amaysim share. That was a 15.6% premium to the one-month volume-weighted average price after the end of October.

After today, any investor still holding Amaysim shares will only be able to have their investment transferred to WAM Capital shares.

Shareholders will automatically receive one WAM Capital share for every 2.675 Amaysim shares they hold at the time of delisting.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Is the Amaysim (ASX:AYS) share price really tumbling 70% today? appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!