ACC has been an investor in Pushpay since its listing on the NZX and currently owns 6.2 per cent of the total shares on issue.
An ACC spokesman said subject to there being no material change in market conditions or the NZD/USD exchange rate, ACC intends to vote against the acquisition of Pushpay at $1.34 per share by Pegasus Bidco Limited under the proposed Scheme of Arrangement.
“ACC believes the bid price undervalues Pushpay and notes that it only just falls within the Independent Adviser’s valuation range.”
Earlier this month, Grant Samuel & Associates, an adviser appointed by Pushpay to assess the offer, valued the church-management software company in the range of $1.33 to $1.53 per share.
Some shareholders expressed outrage when the board recommended the offer, saying it undervalued the company.
The acquisition price was 16.7 times underlying earnings, based on the midpoint of Pushpay’s guidance of US$56 million (NZ$86m) in the 2023 financial year.
Shareholder Nikko Asset Management, which owned 1.4 per cent of Pushpay, would reject the offer too, saying the company was worth more than was being offered.
“There are emerging opportunities for the company to serve new markets, like the North American Catholic market, that are already beginning to show good momentum,” Nikko head of New Zealand equities Stuart Williams said.
“Currently sitting at around 55 per cent of total church giving, we see digital payment as having room for significant growth, ultimately to closer to a 100 per cent market share.”
He encouraged other shareholders to vote against the deal.
ANZ Investments - which has been an investor with Pushpay since 2018 - also announced that it intends to vote on behalf of its clients against the deal.
Craig Brown, head of Australasian equities, said the offer is opportunistic and does not reflect the attractive growth potential of Pushpay.
“Pushpay’s market-leading suite of church software is well placed to benefit from the ongoing digitisation of church management services and donations,” Brown said.
“We consider the Independent Adviser’s assumption that Pushpay will achieve earnings growth of just 2.5 per cent per annum beyond 2027 as conservative.”
ANZ Investments owns 2.7 per cent of the total shares in Pushpay.
Pushpay chairman Graham Shaw said the board had explored options for more than six months, including staying listed, and this was the best offer.
“It provides shareholders with an opportunity to accelerate a capital return, while also mitigating the risks and uncertainties that are otherwise involved in executing Pushpay’s strategic plan over time,” he said in a statement.
The board of directors said $1.34 was “an attractive price” and has unanimously recommended shareholders vote in favour of the scheme of arrangement.
A meeting to vote on the scheme will be held on March 3 in Auckland and online.
