Pushpay sinks almost 15% on rumours of sale failure

Church management software company Pushpay plunged almost 15% while NZ’s market ended the day flat – which was markedly better than yesterday when the index fell more than 1%.

Thursday, September 15th 2022, 6:04PM

by BusinessDesk

Today, the S&P/NZX 50 Index was almost unchanged, edging up 0.01% to 11,658.94. Turnover was $109 million.

Jeremy Sullivan, an investment adviser at Hamilton Hindin Greene, said it had been a “mixed” day for NZ’s market which was still recovering from yesterday’s fall.

Yesterday, global stock markets sank after US inflation data came in at a faster pace than forecast and NZ’s market dropped 1%.

Today, church management software firm Pushpay posted the biggest fall on the benchmark index after speculation of a possible failure of a pending buyout.

On Pushplay’s sudden plunge, Sullivan said the market had gone through a “tumultuous time” over the last four months since it was announced that two parties – Australian private equity firm, BGH Capital, and a large Pushpay shareholder, Sixth Street Partners – were bidding on the firm.

“Interest rates have gone up significantly,” he told BusinessDesk.

“And with the valuation of tech stocks globally, the offer that may have been on the table four months ago – if it's still there which it does look like it is – will be materially different to the initial offer.”

“There's obviously ongoing talks in regards to both the pending suitors – but evaluation will be a key factor to determine whether they decide to proceed.”

The church donation platform’s NZX-listed shares plunged, with shares sinking as low as 14.6% to $1.05 at midday.

By the close they were down 10.6% to $1.10, with more than $3.6m traded and 13 cents lost in the share price.

Pushpay said it was aware of media speculation over the possible failure of a pending buyout, but didn’t comment on whether it was actually going ahead.

While Pushpay had the biggest fall, software firm Plexure Group soared 24.2% to 41 cents – eight cents higher than yesterday.

Air New Zealand was up 1.5% to 67 cents.

It announced today it was trialling its first shipment of sustainable aviation fuel derived from used cooking oil.

Auckland International Airport was up 1% at $7.675.

Wholesaler and distributor of healthcare products Ebos Group said it has picked up a new independent director in Mark Bloom, who was chief financial officer at ASX-listed shopping centre firm Scentre Group from 2014 to 2019 and starts the new role tomorrow.

Ebos was up 0.2% to $38.77. Fisher & Paykel Healthcare was down 0.8% to $20.05.

Statistics NZ's GDP June quarter result was also released today. NZ’s economy expanded 1.7% in the June quarter, bouncing back from a negative quarter faster than many economists had predicted.

ASB senior economist Mark Smith said GDP growth was more than the market consensus, but in line with RBNZ expectations for the second quarter.

“Further volatility lies ahead as the NZ economy continues to transition back towards pre-covid-19 norms, with how this occurs an added uncertainty,” he said in a report this afternoon.

The NZ dollar was largely flat today after falling about a cent and a half yesterday after the US inflation data announcement. It traded at 60.07 US cents at 5pm in Wellington, from 60.05 cents on Wednesday.

Tags: Market Close