ASX 200 falls, BHP rises, Afterpay sinks

The S&P/ASX 200 Index (ASX:XJO) fell today. Iron ore miners including BHP Group (ASX:BHP) went up, but Afterpay Ltd (ASX:APT) shares sank.

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The S&P/ASX 200 Index (ASX: XJO) fell 0.2% today to 7,034 points.

Here are some of the highlights from the ASX today:

Afterpay Ltd (ASX: APT) and other BNPL

The Afterpay share price was among the worst performers in the ASX 200 today, dropping by around 6%.

Many of the other buy now, pay later operators also dropped today. The Zip Co Ltd (ASX: Z1P) share price fell 6%, the Sezzle Inc (ASX: SZL) share price declined 2%, the Splitit Ltd (ASX: SPT) share price dropped 2.6% and the Laybuy Holdings Ltd (ASX: LBY) share price dropped over 4%.

BHP Group Ltd (ASX: BHP) and other iron miners

The iron ore continues to remain elevated with strong demand from China. This is helping the big iron ore miners’ profit stay higher for longer than what was expected by analysts.

The BHP share price went up more than 1% as investors remain bullish on the miners.

Looking at the other two big players, the Rio Tinto Limited (ASX: RIO) share price went up around 1% and the Fortescue Metals Group Limited (ASX: FMG) share price rose more than 1% as well.

Bingo Industries Ltd (ASX: BIN)

The Bingo share price went up more than 6% today in reaction to an agreed takeover.

Bingo revealed that it has entered into a scheme implementation deed with Macquarie Infrastructure and Real Assets and its managed funds (MIRA).

The main takeover option is an offer of $3.45 cash per Bingo share, reduced by any special dividend paid.

The ASX 200 share’s board intends to pay a fully franked special dividend of $0.117 per share which will unlock franking credits of up to $0.05 per Bingo share.

Bingo’s independent board committee and other Bingo recommending directors unanimously recommend the takeover.

The deal represents a 33% premium to the Bingo one-month volume weighted average price up to and including 18 January 2021. The acquisition earnings before interest, tax, depreciation and amortisation (EBITDA) multiple for the 12 months to December 2020 is 19.5 times.

Frank Kwok, head of MIRA Asia-Pacific said:

We believe the proposal we have developed in collaboration with Bingo will deliver real value for Bingo’s shareholders. The proposal recognises Bingo’s achievements and position in the marketplace, with a strong asset base and highly capable management team.

With MIRA’s significant experience investing in and operating recycling and waste management businesses around the world, we look forward to bringing our expertise to support the team in delivering Bingo’s next phase of growth.

Bingo shareholders will be given the opportunity to vote on the scheme at the scheme meeting which is expected to be held in July 2021. The takeover would be implemented shortly after that.  

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Tristan Harrison owns shares of Fortescue Metals Group Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Sezzle Inc. 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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