STM Group and Pension SuperFund Capital have reached an agreement in principle regarding the takeover, although the terms of the agreement are less favorable than originally anticipated. Additionally, the deadline to make an offer has been extended once again.
According to the financial-services provider, the new price for its entire share capital has been set at 67 pence per share, a decrease from the original 70 pence. Despite this reduction, it should be noted that this price still represents a significant premium compared to the closing price of 27.5 pence on July 10, which was the day before the possibility of an offer was first mentioned. As of the market close on Tuesday, shares were valued at 45 pence each.
In order to proceed with the revised terms, certain non-core parts of the company will need to be disposed of according to Pension SuperFund Capital’s strategy. STM Chief Executive Alan Kentish is expected to acquire some of these parts, including the UK SIPP businesses and businesses connected with and including the Master Trust. However, these transactions are subject to necessary approvals.
Due to these changes, the U.K. Takeover Panel has extended the deadline for Pension SuperFund Capital to make an offer until September 8.