Stm Share Discussion Threads

[chrisdgb] 10/10/2023 08:15

No that stays in the business but a good price overall.......

[arthur_lame_stocks] 10/10/2023 07:44

So it looks like the deal is on then at 60p plus potentially another 7p based on customer attrition rates (I think).

Also do we get the £4.5m Alan Kentish is paying for part of the business?

[fillipe] 06/10/2023 10:21

A pity the current two parties didn't have their bottles much in a better row before issuing their first possible offer RNS.

f

[schmally] 28/9/2023 16:39

I think the Sky article was just badly worded. What they should have said was that Edi Truell is part of a wider group of investors with an interest in acquiring the business (as a consortium). I don't believe there are any other potential buyers in the background, so it will be interesting to see where the share price lands if the deal fails to conclude

[rsymes6] 27/9/2023 20:55

Maybe the other approaches weren't for the whole Group or not serious enough for the Board to entertain them?

[jubblies] 27/9/2023 19:57

Here you go..."Pension Superfund Capital, a vehicle controlled by Edi Truell, is among a number of parties to have approached AIM-listed STM Group about a takeover, Sky News learns."hTTps://news.sky.com/story/city-financier-truell-makes-approach-for-pensions-master-trust-stm-12918783

[arthur_lame_stocks] 27/9/2023 17:59

But then didn't the original Sky News article state that they had received a number of approaches?

[rsymes6] 27/9/2023 17:22

I doubt it will A_L_S. With their mix of businesses and UK/international markets STM it's likely they would only attract a special type of buyer like PSFC rather than someone like another UK pension operator. It's not hard to imagine that the bidder wants one or two specific parts of STM and with a series of disposals of the bits it doesn't need/want it could end up with what it wants at an overall net cost of 'not a lot'. With the loan note option it buys itself time to dispose of other parts of the group, assuming it hasn't already been working on finding buyers already, other than the announced CEO as buyer of the SIPP part.

[tabhair] 27/9/2023 17:15

The initial offer was 70p, then revised down to 67p, now revised to 60p + 7p unsecured loan note. The board has not agreed terms on the revised offer.

Not the worse news, but not great either.

The unsecured note part of the offer is the biggest irritant. If you hold your STM shares in an ISA or SIPP, how does this get distributed?

Next update has to be provided by October 11th.

[arthur_lame_stocks] 27/9/2023 17:04

Who knows, perhaps the worsened terms will smoke out another bidder.

[arthur_lame_stocks] 27/9/2023 16:53

Not the best news

[rsymes6] 27/9/2023 16:30

A_L_S - yes they are but the question has been/is what is the bidders strategy, why are they interested in STM? I suspect that the life companies are the bit they really want as it would enable Edi Truell to replicate what he did with Pension Insurance Corporation which was DB buyout/consolidation. Not being interested in STMs UK pensions business, which is mainly SIPPs, gives some clues. Plus selling (one of?) the parts that they don't want to the CEO/MBO saves them the hassle and cost of trying to dispose of them post acquisition. Just my two penn'orth!

[arthur_lame_stocks] 27/9/2023 16:13

The article I saw talks of DB pensions. Aren't STM's DC?

[rsymes6] 27/9/2023 15:54

If you google it there's a few articles from about 6 days ago.

[arthur_lame_stocks] 27/9/2023 15:26

Where did you see the Edi Truell announcement please?

[schmally] 27/9/2023 14:48

No news this morning suggests we'll get a late RNS stating a further extension to negotiations. This looks like a bit of a messy deal to me, with no clear indication of how the buyer will utilise the assets they're acquiring. It's puzzling, especially now Edi Truell has announced he's mothballed his Pension Superfund

[lammylover] 27/9/2023 09:41

Hope we get deal done before 5pm, however I don't mind another extension - if we get can 67p, then I'll be happy!

[arthur_lame_stocks] 27/9/2023 09:12

Well no news yet! There'll have to be an RNS at some point today, will it be after close?

[schmally] 26/9/2023 15:53

The Options UK SIPP business currently administers approx 12000 SIPPs, that I would estimate generate revenue of approx £5-6 million, with potential for this to increase significantly if they are now benefitting from increased interest earnings on SIPP cash holdings

[schmally] 26/9/2023 15:08

I've read the deal to be as follows: The offer price will be for the whole business, with the regulated SIPP business then acquired from the buyer as part of an MBO.

[schmally] 26/9/2023 15:02

What needs to be understood, is that the Mercer business included both SIPP & SSAS books of approx equal value, so if only the regulated SIPP business is being retained (SSAS is not FCA regulated), then only approx half the Mercer business will ultimately transfer to the new buyer and half retained as part of AK's MBO.

[tabhair] 25/9/2023 15:07

The acquisition of the SIPP and SSAS
book from Mercer in September 2022
was however particularly pleasing. The
portfolios were acquired at sensible
multiples and add a solid and predictable
revenue stream of circa £2.7 million for
2023 and beyond. The smooth transition
from Mercer and integration into STM
was achieved prior to the year end.

---------------------------

The UK SIPP business that is being sold to Kentish is referenced in the 2022 annual report. It was bought just one year ago from Mercer and is valued at £1.5m.

The company has to provide another update by September 27th. Maybe we will get further clarity on what happens with the piece of the business that's worth 3p.

[rsymes6] 22/9/2023 15:34

So the bidder is offering 3p less without those parts, approx £1.8m less overall(60m shares x 3p)

If you look at the 2022 accounts filed on Companies House for the parts he appears to be interested in, then he's buying net liabilities not net assets. The shareholders funds deficit shown is £1.8m. Maybe he'll be offering £1 for the business:)

[arthur_lame_stocks] 22/9/2023 14:12

If Alan Kentish is buying parts of the business, does that mean we'll get more than 67p for the whole lot or not does anyone know?

[lammylover] 08/9/2023 09:04

Yes, all looks positive here. Shareholders backing deal at 67p. Monies available for bid. Just sit back and relax!