Pushpay share price halted following takeover approach

Pushpay has received a takeover approach…

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Man drawing illustration of a big fish eating a little fish representing a takeover or acquisition.

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The Pushpay Holdings Ltd (ASX: PPH) share price won’t be going anywhere on Tuesday.

Prior to the market open, this donation technology company requested that its shares be placed in a trading halt.

Why is the Pushpay share price in a trading halt?

The Pushpay share price has been paused while the company prepares a response to the receipt of a takeover approach.

The company commented:

Pushpay advises it has recently received unsolicited, non-binding and conditional expressions of interest or approaches from third parties looking to acquire the Company. The Board has appointed Goldman Sachs to assist as financial advisor. There is no certainty that these expressions of interest or approaches will result in any transaction.

Who is interested?

The suitors are BGH Capital and Sixth Street, which this morning revealed that they have acquired an aggregate 20% stake in Pushpay.

The release confirms:

This morning, before market open, associated interests of BGH Capital and Sixth Street released substantial product holder notices to NZX under which those parties disclosed an aggregate relevant interest in PPH shares of 20.343% as a result of an agreement between them under which they have agreed to co-operate in respect of a potential acquisition of PPH. The request for the trading halt is to provide PPH with sufficient time to review the co-operation agreement and prepare an appropriate update to the market.

One thing that has not been revealed, however, is the price that BGH Capital and Sixth Street is willing to pay to acquire the company.

With the Pushpay share price down 42% from its 52-week high, shareholders will no doubt be hoping the offer isn’t opportunistic and instead lands at least somewhere close to previous highs.

We should find out by Thursday when the Pushpay share price is scheduled to resume trading again.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has positions in and has recommended PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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