Pushpay shares climb on improved offer

Pushpay has received an improved takeover offer. Photo / Supplied

Pushpay Holdings climbed 10.6 per cent to $1.36 after the faith-based administration software developer’s suitor offered a sweeter deal.

Earlier this month, the investors of the church payment software rejected an offer of $1.34 per share by BGH Capital and Sixth Street – under Pegasus Bidco, chaired by Ralph Norris. The original offer only just snuck into the independent valuation of between $1.33 to $1.53 per share. 

After two extensions to come back with a better offer, the consortium came back with an offer of $1.42 per share.

That gives Pushpay an implied enterprise value of US$1.04 billion, or NZ$1.67b, compared to an implied enterprise value of US$933 million, or NZ$1.6b when the first scheme was announced in October. 

In today’s announcement, Pushpay said seven of its largest New Zealand-based institutional shareholders – with an aggregated 18.6 per cent of issued capital – indicated they would vote in favour.

Previously, ACC, the Super Fund and Nikko Asset Management were among those who voted against the lower offer.

To get the improved offer over the line, the announcement said a small number of “sophisticated, professional offshore event-driven” fund shareholders who hold 10.3 per cent of Pushpay’s issued capital agreed to vote in favour of the scheme and receive the original cash consideration of $1.34 per share for all the shares they currently hold or control. 

All other shareholders are being offered $1.42. 

Pushpay’s non-conflicted directors were unanimously recommending the offer. A new meeting would be held for Pushpay shareholders as soon as practicable, with a specific date to be advised when agreed.

- BusinessDesk