A consortium including Melbourne private equity firm BGH Capital has made a revised offer for Pushpay Holdings (NZX/ASX: PPH).
Pushpay noted in a Monday, 10 October announcement, that it was “aware of media speculation that a shareholder consortium has submitted a revised proposal to acquire the company at a premium to Friday’s closing share price”. The company’s shares had closed at $1.01.
Auckland-founded Pushpay provides donations management technology and video streaming services for churches, non-profit organisations and education providers, predominantly in the US. Sydney-founded Hillsong is among churches that use the technology.
Pushpay said: “As part of the ongoing process, the company has received a revised indicative non-binding proposal and is continuing to assess whether there is the potential for a transaction that is in the best interests of shareholders as a whole”.
The shares rose to close at $1.07 following the announcement but returned to just above a dollar the following day.
A 26 April announcement about “unsolicited approaches” sent Pushpay’s share price up almost 23% from 96 cents to $1.18.
On 24 May, Pushpay announced that BGH Capital and US-based global investment firm Sixth Street were working together on an offer for the company. The two firms had revealed that they had jointly acquired more than 1.14 million of the company’s shares giving them more than a 20% stake.
Speculation at the time suggested the consortium’s initial non-binding offer was up to $1.40 per share valuing the company at more than $1.5 billion.
In light of changed economic conditions, the revised offer is likely to be lower.
Image: A Hillsong Church service. The Sydney-founded church uses Pushpay’s technology.