Revised Takeover Proposal Received by STM Group

STM Group has announced that it has received a revised proposal from Pension SuperFund Capital for its takeover. Furthermore, the deadline for making an offer has been extended once again.

Details of the Offer

According to the financial-services provider, the offer is set at 67 pence per share for the entire issued share capital. This values the deal at approximately £39.8 million ($48.4 million). The offer consists of 60 pence per share in cash and 7 pence per share through a convertible loan note.

A Premium Offer

The proposed offer represents a significant premium compared to the closing price of 27.5 pence on July 10, the day before the possibility of an offer was first mentioned. As of the close of the market on Wednesday, shares were valued at 55 pence each.

Changes in the Proposal

While the offer price per share remains the same as a previous proposal received in early September, there have been notable changes. The prior deal was conditional upon the disposal of certain non-core parts of the company. In the new proposal, subject to approvals, STM Chief Executive Alan Kentish will only acquire the UK SIPP businesses.

Deadline Extension

In light of the revised terms, the U.K. Takeover Panel has extended the deadline for Pension SuperFund Capital to make an offer until October 11.