Pushpay says in order to facilitate the improved offer, a small number of offshore shareholders agreed to vote in favour of the scheme and receive the original $1.34 offer.(file image) Photo: 123RF
Shareholders of mobile donations company Pushpay have been presented with an improved takeover bid following the rejection of the previous offer.
The new $1.42 per share offer from Pushpay's two biggest shareholders was up 6 percent from the previous offer of $1.34.
The previous offer did not meet a key voting threshold, with several institutional investors publicly announcing their objection to the offer.
However, Pushpay said this time, seven of its largest New Zealand-based institutional shareholders, six of which voted against the previous offer, have indicated they would now vote in favour for the new offer.
It comes after the bidders were given more time to propose the improved offer.
Pushpay said in order to facilitate the improved offer, a small number of offshore shareholders agreed to vote in favour of the scheme and receive the original $1.34 offer.
All other shareholders would be offered $1.42 under the scheme.
Pushpay's non-conflicted directors have unanimously backed the new offer, just as they did with the previous offer.
The company said the increased offer was a near 38 percent premium on Pushpay's share price of $1.03 on 22 April 2022, when Pushpay announced it had received expressions of interest.
"The non-conflicted directors believe the scheme represents the most compelling risk-adjusted value for shareholders," Pushpay told the share market.
"It provides shareholders with an opportunity to accelerate a capital return, while also mitigating the risks and uncertainties that are otherwise involved in delivering the opportunities from executing Pushpay's strategic plan over time," it said.
It would hold a new scheme meeting "as soon as practicable", with a specific date to be announced when agreed.
Much better offer
Among the institutional investors that rejected the initial offer was Nikko Asset Management.
Its investment analyst, Tim O'Loan, said the new offer was acceptable and more likely to get over the line.
"We have agreed to vote in favour for it," O'Loan said.
The offer was at the middle of the independent valuation range, which was good, he said.
"We then take into account things like current market and economic conditions, and the fact that we're receiving cash now rather than having to wait say a year or longer for capital appreciation - which we think will come for a company like Pushpay," O'Loan said.
After weighing those up, the offer was deemed satisfactory, he said.
O'Loan believed the current economic and market conditions played a significant role in approving the offer.
"Especially when we consider this week the failure of SVB in San Francisco. So things like that will be weighing on markets and I think they probably had played a role in where we've landed," he said.