PPH-Pushpay

[Shareguy]

There is the option for competing bids with the option for bidder to meet or be compensated.

Can't see this happening, unless the USA does have a hard landing.

[Shareguy]

I have already emailed the company and told them what I think of this offer.

[Basil]

There is the option for competing bids with the option for bidder to meet or be compensated.

Can't see this happening, unless the USA does have a hard landing.

I hope it works out for you mate.   Hope you used the words you're an embarrassment and a disgrace when communicating with the board.  Don't hold back, tell them what you really think...at least you'll feel a bit better if you vent your spleen properly.

[winner (n)]

Betcha the early big backers / founders are wondering what the heck is going on

[Gerald]

Betcha the early big backers / founders are wondering what the heck is going on

Haven't they already jumped ship or is there a few left

[Shareguy]

It's raining again so going through the disclosures. I can not see this takeover going anywhere at the current price.  You have numerous disclosures where large positions were purchased at $1.80 or higher. They need 90 percent. Even some of the directors paid more. Acc buying at $1.30. Harbour buying 50m at $1.88. Sixth street buying Hulichs 17 percent for $1.85

Will be interesting to see where it ends up and what comes out of the woodwork. Can't see many accepting this offer at all.

Will be interesting to see what sp does on Monday.

[Basil]

Just an academic interest for me but I can't help wondering if the meltdown in the tech and SAAS sector in the US this year is a factor here ?  I've seen some horrific drops in certain well known stocks on the NASDAQ.  60-70% is not uncommon at all.

Never mind all the EBITDAF stuff...(bean counters occupational hazard is we are always focused on the real earnings), on Thursday last week (off direct broking website), PPH closed at 28 times FY22 earnings and had -7.86 cps NTA.  Just my 2 cents....the offer is pitched at 31.5 times FY22 earnings and the growth rate at present is pretty modest.  I note from many experts' comments on CNBC in recent weeks that funding costs for M&A activities have shot through the roof in recent months.  Maybe this is as good as it gets in the current tech wreck environment which is a very different one from the landscape prevailing even as recently as six months ago ?

 

[Gerald]

It's raining again so going through the disclosures. I can not see this takeover going anywhere at the current price.  You have numerous disclosures where large positions were purchased at $1.80 or higher. They need 90 percent. Even some of the directors paid more. Acc buying at $1.30. Harbour buying 50m at $1.88. Sixth street buying Hulichs 17 percent for $1.85

Will be interesting to see where it ends up and what comes out of the woodwork. Can't see many accepting this offer at all.

Will be interesting to see what sp does on Monday.

The voting thresholds for approval of the Scheme are:
• 75% or more of the votes cast in each interest class must be voted in favour of the Scheme; and
• more than 50% of the total number of shares on issue must be voted in favour of the Scheme.

If SS / BGH own 20.34%, wouldn't that only require a further 54.66%, so 68.1% of the remaining votes to vote in favour, not 90%?

2 thirds doesn't seem insurmountable, one would have to assume that the majority of institutions which own ~40% will vote in favour or push for a small bump if they assess this logically and think about what's going to happen if they reject this, especially given the downgrade and what's happened to similar stocks over the period the takeover has been on the table.

https://www.investopedia.com/terms/s/sunkcost.asp

[winner (n)]

Kingfish have about $10m in PPH

They'll accept I reckon

[Shareguy]

I agree Gerald. Have just seen that.  A lower  bar to cross, but still think they will have to up the price. Do concede that the market has changed... we will see how it pans out. Will be interesting to see independent advisors report.

The voting thresholds for approval of the Scheme are:
• 75% or more of the votes cast in each interest class must be voted in favour of the Scheme; and
• more than 50% of the total number of shares on issue must be voted in favour of the Scheme.
Pushpay Holdings Limited
4
Pushpay enters into scheme implementation agreement at NZ$1.34 in cash per share
  It is currently expected that there will be two interest classes. First, interests associated with Sixth Street and BGH Capital who hold Pushpay shares and second, the remaining shareholders.

Disappointing that another company will depart the NZX.

[winner (n)]

Wonder if there be much action on market today ....maybe lead from Oz best guide

[Basil]

Match price already $1.23 and 47 minutes to open.  Maybe it opens close to the bid price on speculation this bid will have to be tweaked ?

[Mysterion]

This time last year Pushpay = USD$1.5B market cap

Gets taken over at USD $900m

Success story

[Basil]

Very early days but I think at $1.27 as at the time of posting, taking into account the time value of money through to about May 2023 the current market pricing is suggesting this deal is likely to happen at the proposed price.

[Shareguy]

You might be right. Over 15m traded so far just on the NZX suggests that some think its worth the gamble for a better offer or at $1.27 an easy $0.07 cents.