Afterpay spikes as market reacts to Tencent investment

Afterpay spikes as market reacts to Tencent investment

Shares in buy-now pay-later group Afterpay (ASX: APT) have spiked this morning on the news that Chinese tech giant Tencent has become a substantial shareholder in the company.

APT opened this morning at $38 per share as shareholders reacted to an announcement released on Friday evening that the company which owns WeChat acquired five per cent of Afterpay.

The company also hit a high of $39.59 per share today, marking a bounce-back to the same level Afterpay was at right before the COVID-19 financial crisis really hit Australia.

At the time of writing shares in APT are still going strong, up 23.97 per cent to $36.15 per share.


Read more: Afterpay on the defensive after enormous share price drop


On Friday co-founders Anthony Eisen and Nick Molnar welcomed Tencent as a substantial shareholder.

"We feel very privileged to welcome Tencent as a substantial shareholder in our business," said Eisen and Molnar.

"Being able to attract a strategic investor of this calibre is extremely rewarding and is a testament to our team and the strength of our differentiated business model.

"Tencent's investment provides us with the opportunity to learn from one of the world's most successful digital platform businesses. To be able to tap into Tencent's vast experience and network is valuable, as is the potential to collaborate in areas such as technology, geographic expansion and future payment options on the Afterpay platform."

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

How P2C can help retailers maintain brand loyalty amid the supply chain crisis
Partner Content
With the ongoing supply chain crisis expected to continue throughout 2022, retailers ar...
Productsup
Advertisement

Related Stories

ACTU claims free test request "reasonable", but employer body deems strike threats inappropriate

ACTU claims free test request "reasonable", but employer body deems strike threats inappropriate

With workplaces nationally fighting fires across multiple fronts as...

Victoria declares Pandemic Code Brown at hospitals to stay ahead of climb in COVID patient numbers

Victoria declares Pandemic Code Brown at hospitals to stay ahead of climb in COVID patient numbers

The Victorian Government will put emergency measures in place acros...

Consumer confidence drops to lowest level since October 2020

Consumer confidence drops to lowest level since October 2020

Consumer confidence usually rises in January, but not this year as ...

Brian Hartzer-helmed fintech Beforepay dives 42 per cent on ASX debut

Brian Hartzer-helmed fintech Beforepay dives 42 per cent on ASX debut

Today’s debut of ‘Pay on Demand’ platform Beforep...