Sixth Street, BGH to buy Pushpay (NZX:PPH) for NZ$1.53B

Highlights

• Sixth Street and BGH Capital offer to buy all of Pushpay’s shares for NZ$1.34 a share.
• As per the company, this deal is likely to bring value to the shareholders.
• Pushpay had started receiving expressions of interest to acquire it as early as April 2022.

Pushpay Holdings Limited (NZX:PPH) announced on the NZX that it had entered into a takeover deal with Sixth Street and BGH Capital Consortium, who would acquire all of Pushpay’s shares at NZ$1.34 per share.

The deal, which values the company at NZ$1.53 billion, will be carried out through a scheme of arrangement, according to Pushpay's last announcement on NZX.

The offer price represents a 16.1% premium on last week’s share price of Pushpay.

Pushpay said that after detailed consideration of its strategic options, the board opted for the deal as the best suited for the shareholders.

On 26 April 2022, Pushpay announced that it had received unsolicited, non-binding expressions of interest from third parties to acquire the company. Since then, the company has received additional interest from multiple parties. The company said it had started exploring the potential for a transaction with multiple parties in April.

The takeover scheme is subject to go-ahead by the shareholders and other regulatory approvals, said the company adding that shareholders’ nod is expected to be sought at a special meeting to be held next year.

However, as per Pushpay , at present, the shareholders are not required to take any action.

Graham Shaw, the chairman of the company, said that while considering several options, the company took a view of the risks and rewards of various alternatives, and after a thorough assessment, it felt that Sixth Street/BGH together offered the best value for the shareholders.

According to the chairman, the transaction will enhance the capital return to the shareholders and lessen risks for them.

FY23 guidance

Pushpay also provided the market its FY23 guidance today (31 October 2022). The company now expects its underlying EBITDA to be between US$54 million and US$58 million, against the previous forecast of between US$56 million and US$61 million. 

Stock update

On 31 October, the company’s stock was trading up by 5.06%, at NZ$1.250, at the time of writing this article.