Critics have called a bids for mobile donations company Pushpay cheap and opportunistic. Photo: 123RF
The billion dollar takeover of mobile donations company Pushpay looks dead barring a last minute miracle.
Its board said votes cast ahead of a meeting on Friday indicated the $1.5 billion offer from its two biggest shareholders would not get one of the crucial support levels needed to proceed.
"As a result of the proxy votes received, absent a material change in the votes of shareholders who have already cast proxy votes, the Scheme will not receive the required 75 percent majority of the Second Interest Class and the resolution will not pass," it said in a statement to the NZX.
The bidders, Australian private equity firm BGH Capital and US investment company Sixth Street with a combined 20 percent stake, need the backing of 75 percent of the votes cast by other shareholders and 50 percent of all the company's shares .
The board said the offer so far had only 56 percent backing of other shareholders who had cast proxy votes, and 54 percent of all shares.
The board said the advance voting tallies would not necessarily reflect the final voting position, and the shareholder meeting scheduled for Friday would proceed "to ensure all shareholders have the opportunity to have their say on the Scheme."
Trading in the company's shares have been halted since Wednesday and that was extended until Monday 6 March.
The bidders and the company board have until 7 March to decide on holding another meeting.
"If this does not occur, either Pushpay or the Bidder can terminate the Scheme Implementation Agreement, in which case the Scheme will not proceed and Pushpay will remain listed on the NZX and ASX."
The takeover has been one of the most contentious in recent local corporate history, with a handful of investment funds taking the unusual step of openly denouncing and opposing the offer as opportunistic and cheap.