Mobile donations company Pushpay has confirmed it has been told that its biggest shareholder, US investment firm Sixth Street, has joined Australian private equity firm, BGH Capital, ahead of a possible bid.<\/p>\n
Photo: 123rf<\/p>\n
\"Pushpay has not entered an agreement with any party, including either or both of BGH Capital and Sixth Street, to implement a transaction,\" it said in a statement to the NZX.<\/p>\n
\"Pushpay notes that the agreement is not a definitive transaction agreement and can be terminated immediately by either party on notice to the other.\"<\/p>\n
Between them the two foreign investors own 20.3 percent of Pushpay.<\/p>\n
Pushpay shares were put on a trading halt pending details of the approaches, but leapt 21 percent to a six-month high when trading resumed.<\/p>\n
Last month, Pushpay disclosed it had received unsolicited, non-binding, and conditional expressions of interest or approaches from third parties looking to acquire the company, but had declined to give any details.<\/p>\n
\"Pushpay is continuing with a process that is already underway and is in an early stage with multiple parties, to explore the potential for a transaction which is in the best interests of shareholders as a whole,\" it said, adding there was no certainty any transaction would be done.<\/p>\n
BGH said a subsidiary, Oceania Trust, had bought more than 3 percent of Pushpay $47.1m in the past couple of weeks and struck a pact with Sixth Street.<\/p>\n
\"Under the cooperation agreement, the parties have agreed to work together to consider, negotiate and implement the potential acquisition by Oceania and the Sixth Street Entities ... of all or a substantial part of the shares or PPH's assets and business by way of a scheme of arrangement,\" it said in a statement.<\/p>\n
Pushpay, once a hot tech stock on the New Zealand stock exchange, has a market value of about $1.4 billion, although its core business, church donations in the US, has been affected by Covid and the emergence of rivals.<\/p>\n
Investment analysts have speculated a price tag of up to $2b for the company.<\/p>\n
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Takeover bid for Pushpay in the offing - RNZ<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Mobile donations company Pushpay has confirmed it has been told that its biggest shareholder, US investment firm Sixth Street, has joined Australian private equity firm, BGH Capital, ahead of a possible bid. Photo: 123rf \"Pushpay has not entered an agreement with any party, including either or both of BGH Capital and Sixth Street, to implement a transaction,\" it said in a statement to the NZX. Continue reading