The Pushpay Holdings Ltd (ASX: PPH) share price has burst out of its trading halt earlier than expected on Tuesday.
In afternoon trade, the donation technology company's shares have jumped 17% to $1.31.
Why is the Pushpay share price jumping?
The Pushpay share price was placed in a trading halt this morning pending the release of an announcement relating to a takeover approach.
Although the company requested the halt until Thursday, it hasn't needed anywhere near as long to respond to the proposal.
According to the release, Pushpay has confirmed the receipt of an offer from two existing shareholders, BGH Capital and Sixth Street. Combined, these shareholders have a holding of just over 20% in the company.
The release notes that BGH Capital and Sixth Street have advised that they have entered into a co-operation agreement with respect to a potential transaction involving Pushpay.
However, Pushpay has warned shareholders that the proposal is not a definitive transaction agreement and can be terminated immediately by either party on notice to the other.
Furthermore, the company has not entered an agreement with any party, including either or both of BGH Capital and Sixth Street, to implement a transaction.
Instead, it is continuing with a process that is already underway, and is in an early stage with multiple parties, to explore the potential for a transaction which is in the best interests of shareholders as a whole.
Though, once again, it has warned that there is no certainty that this process will result in any transaction.
Unfortunately, Pushpay has neglected to provide retail shareholders with any further details, such as the takeover price that is being proposed. So, they may have to sit tight until BGH Capital and Sixth Street or one of the other "multiple parties" tables a firm offer.
