Morningstar raises PT on NZ's Pushpay on view it accepts sweetened $1 bln bid

Sixth Street Specialty Lending

16/03/2023 23:30

** Morningstar raises fair value estimate for Pushpay
Holdings  PPH.NZ  to NZ$1.42 from NZ$1.34 on view that co will
accept sweetened bid from Pegasus Bidco
    ** PPH said on Thursday Pegasus Bidco, a consortium of
investment firms Sixth Street and BGH Capital, has raised its
buyout offer for the payments terminal firm to NZ$1.62 bln
($1.00 bln)
    ** Pegasus has gained further shareholder buy-in since the
original scheme meeting, which has greatly increased the odds
for the revised scheme to be passed - Morningstar
    ** Brokerage sees greatest revenue prospect from co's
growing penetration into the medium-size to large church market,
where co is provider of donor and facilities management systems
    ** Pushpay’s share price could fall if the deal does not
proceed - Morningstar
    ** Forecasts co to grow processing volumes to about $14.5
bln by FY27, from $7.6 bln in FY22
    ** PPH shares are up as much as 0.7% at NZ$1.4; Stock is up
8.6% this year as of last close 
    
 ($1 = 1.6192 New Zealand dollars)

 (Reporting by Ayushman Ojha in Bengaluru)
 ((Ayushman.ojha@thomsonreuters.com;))