Tencent: A Closer Look at Investees Reveals a Discount Rating and Future Value Unlock Potential

Tencent – Afterpay Model Validated By Apple and Google

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Equity Bottom-Up

*EU Transaction: Afterpay is set to acquire Pagantis, which is noted as a ‘traditional buy now, pay later traditional credit service provider’ with a presence and license to operate in Spain, France and Italy, with approvals to enter Portgual and an application underway to enter Germany. This is a low-risk way for Afterpay to enter the EU with an established presence, knowledge base, and technology stack;*Other Recently Announced Positives: In addition to the update provided on Pagantis, Afterpay has provided a solid update on its growth and traction post-deal; expressed its interest in a capital raise; and onboarded Apple Pay (AAPL.US) and Alphabet (GOOG.US) Google Pay; and*Magic Fairy Dust: While no transaction particulars were disclosed, we calculate an average share purchase price of AUD 22.47 per share for the 5% stake or a hefty 6.8x P/BV for a company which is loss-making and where Tencent hasn’t control. Tencent has already earned 146% on this stake.

*EU Transaction: Afterpay is set to acquire Pagantis, which is noted as a ‘traditional buy now, pay later traditional credit service provider’ with a presence and license to operate in Spain, France and Italy, with approvals to enter Portgual and an application underway to enter Germany. This is a low-risk way for Afterpay to enter the EU with an established presence, knowledge base, and technology stack;*Other Recently Announced Positives: In addition to the update provided on Pagantis, Afterpay has provided a solid update on its growth and traction post-deal; expressed its interest in a capital raise; and onboarded Apple Pay (AAPL.US) and Alphabet (GOOG.US) Google Pay; and*Magic Fairy Dust: While no transaction particulars were disclosed, we calculate an average share purchase price of AUD 22.47 per share for the 5% stake or a hefty 6.8x P/BV for a company which is loss-making and where Tencent hasn’t control. Tencent has already earned 146% on this stake. 

Afterpay Holdings

Tencent - After-Life In EU