Pushpay (ASX:PPH) gets revised buyout offer; here’s how shares are reacting

Highlights

• Pushpay has received a revised buyout offer from a shareholder consortium.
• The acquisition is yet to take place; the company hasn’t given any assurance as of now.

On 10 October 2022, software and services firm - Pushpay Holdings Limited (ASX:PPH) released a ‘response to media speculation’ report on ASX. This release addresses the company’s prior announcements in regard to the expressions of a potential acquisition of Pushpay.

The report mentions that Pushpay is aware of the media rumours that a shareholder group has submitted a revised offer to buy the company at a price higher than its closing share price on Friday (7 October 2022). The company has confirmed that it has received a revised indicative non-binding proposal and is still determining if there is a chance for a transaction that is in the best interests of all shareholders.

Meanwhile, the shares of the company, at 10:33 AM AEDT, were buzzing in the green territory, up 0.9% at AU$0.075 apiece on ASX on 11 October 2022.

However, there is no assurance that a transaction will take place, nor is there any assurance about the cost or timeliness of any transaction. Pushpay will keep the market informed going forward in accordance with its ongoing disclosure obligations.

A glance at Pushpay’s prior announcements

According to a report published by Pushpay on ASX, the company had been continuously receiving multiple unsolicited, non-binding, and conditional expressions of approaches from third-party firms from 26 April 2022. The company has chosen Goldman Sachs to serve as a financial advisor.

Furthermore, on 24 May 2022, two of the interests that are linked to BGH Capital and Sixth Street have informed Pushpay to enter a cooperation agreement. The potential acquisition of Pushpay was included in this agreement. The company, however emphasises that the contract is not a binding transaction agreement and that either party may end it at any time by giving the other party notice. The substantial product holder notices that both parties have released include the conditions of the agreement linked to them.

Pushpay has not signed a contract to carry out a transaction with any party, including one or both of BGH Capital and Sixth Street. The business is conducting an ongoing process that is in its early stages with a number of stakeholders to investigate the possibility of a transaction that is in the best interests of all shareholders. The outcome of this process, whether a transaction or not, is uncertain.

Know about Pushpay

Pushpay Holdings Limited represents itself as a donor management system operating within the USA. The company offers numerous services to its customer base, including donor tools, financial tools, and a customised community app, as well as video streaming solutions to the religious community, non-profits, and educational institutions of America. Pushpay is publicly listed on both NZX and ASX.