The market may be a sea of red on Thursday, but that hasn't stopped one ASX tech stock from rocketing higher.
In morning trade, the Pushpay Holdings Ltd (ASX: PPH) share price is up 15% to $1.30.
Why is this tech stock rocketing?
The catalyst for this rise has been news that Pegasus BidCo has returned with an improved takeover offer. This comes after shareholders rejected a previous offer at a scheme meeting earlier this month.
According to the release, Pegasus has lifted its offer by 6% from NZ$1.34 cash per share to NZ$1.42 per share.
Based on current exchange rates, this represents an offer of A$1.32 per share, which is just a touch above where this tech stock is trading today.
This values Pushpay's equity at NZ$1.63 billion or A$1.52 billion.
Will it happen this time?
It is looking more likely that this ASX tech stock will be successfully taken private this time.
That's because a number of large investors that rejected the previous offer are now on board and intend to vote in favour of the scheme.
In addition, some shareholders have agreed to accept a lower amount in order to get the deal over the line. The release notes that a small number of sophisticated, professional offshore event-driven shareholders have agreed to accept the original cash consideration of NZ$1.34 per share.
Combined, shareholders holding a total of 28.9% of Pushpay's issued capital intend to vote in favour of the scheme.
What's next?
Pushpay's non-conflicted directors unanimously recommend that shareholders vote in favour of the scheme and plan to vote all of their own shares in its favour. This is in the absence of a superior proposal.
Management advised that a new scheme meeting will be held as soon as practically possible. And for the scheme to proceed, it is necessary that two voting thresholds are met. These are:
75% or more of the votes of shareholders in each interest class who are entitled to vote and who actually vote must be voted in favour of the Scheme; and more than 50% of the total number of Pushpay shares on issue must be voted in favour of the Scheme.
The scheme remains subject to Pushpay shareholder and New Zealand High Court approvals and is also subject to other customary conditions.
