Melbourne-based private equity firm BGH Capital and US investment firm Sixth Street have until Monday (13 March) to come up with an improved offer for church payments and community software company Pushpay (NZX/ASX: PPH).
A $NZ1.539 billion takeover offer from BGH and Sixth Street was rejected by shareholders on 3 March despite being recommended by the company’s board.
Only about 55% of shareholders not associated with the offer voted in favour of it.
BGH and Sixth Street had a combined interest in Pushpay of 20.3% before they made their $NZ1.34-a-share offer which the company’s board conditionally recommended to shareholders in October. The offer was at a 13% premium to the price of the company’s shares prior to the announcement, and a 30.1% premium to the price before the company disclosed acquisition interest in April.
A valuation prepared by Grant Samuel, as independent adviser on the bid, released last month, however, gave a valuation range of $NZ1.33 to $NZ1.53 for the shares, meaning the offer was close to the bottom of the range.
The Monday deadline is an agreed extension of a scheme implementation agreement (SIA) between Pushpay and the potential acquirers. Pushpay’s board will then be required recommend that a revised offer be considered by shareholders if the deal is to remain alive.
Auckland-founded Pushpay provides donations management technology and video streaming services for churches, non-profit organisations and education providers, predominantly in the US. Controversial Sydney-founded Hillsong is among churches that use the technology.
Image: Hillsong worshippers; the church uses Pushpay technology.