New Pushpay Offer Shows Value Of Active Management For Shareholders

• Nikko AM vocal in opposing initial offer from bidding consortium
• Active fund manager now supportive of revised offer in best interests of investors

Nikko AM is supportive of the new consideration price of $1.42 per share presented by the consortium bidding to take over New Zealand-founded church payment and management software company, Pushpay.

The active fund manager, which owns approximately 1.4% of the dual-listed company, had been one of the first active shareholders to oppose the recommendation of Pushpay’s board to accept the initial takeover offer of $1.34 per share, which was subsequently voted down by shareholders at the beginning of the month.

The bidding consortium and a group of large institutional New Zealand investors have now returned with an offer that Nikko AM analyst, Tim O’Loan, says represents a far better outcome for shareholders.

“We’re supportive of this new price primarily because it’s close to the middle of the independent valuation range of $1.33 to $1.53.”

“While we still believe that Pushpay is a great company, and that a well-executed strategy would result in a greater realisation of value, as an active fund manager we act in the best interest of our investors and at this point of time, considering market and economic conditions, we believe an offer in the middle of the independent valuation range is acceptable.”

O’Loan says the sequence of events that have led to the revised offer being presented offer a clear indication of the value of active fund managers for investors.

“It’s the actions and diligence of large active investors that has resulted in this superior outcome for shareholders. Model portfolios and index tracking funds can only follow and not challenge board and proxy advisor recommendations. Had these been accepted, this additional value for Pushpay shareholders would have been left on the table.”

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