Passive managers piggy backing off active manager

The passive funds followed the recommendations of Australia-based proxy service companies and, if the takeover had succeeded, that would have been “a funny outcome when a better outcome could be achieved”, according to Michael Sherrock, Nikko’s co-head of equities.

The bidder, a consortium of US-based Sixth Street and Australia-based BGH Capital, had offered $1.34 per share for Pushpay, valuing it at nearly $1.53 billion, but that was near the bottom of Grant Samuel’s independent valuation of $1.33 to $1.53.

Concerted opposition by local active fund managers, including Nikko, ACC, Fisher Funds, ANZ Investments and the NZ Superannuation Fund, meant the vote failed to reach the 75% threshold required for the takeover to succeed.

Of the shares not owned by the bidders, only 55.5% were voted in favour.