Stm Share Discussion Threads

[bbmsionlypostafter mk2] 08/11/2023 16:11

schmally,

It's been a long time since we chatted. Actually, it was more like me chatting & you with your formidable insight trying to educate me on the stock market.

Are you keeping an eye on VRS?

Do you remember when I told you to get on the lifeboat when the shares were 53 or 58p or whatever it was & you scoffed at my ignorance? Twice you did that. Well they are about a third of 1p today! Still happy to hold?

LOLS!!

Don't be a stranger, you're missed on the VRS threads.

[boystown] 25/10/2023 10:08

I see what you mean camerongd53. There's no rule to preclude this afaik - but others may know better.

You'd think that if they intend to pay the additional 7p, they may as well hoover up at 60p.

[camerongd53] 24/10/2023 21:24

Boystown
You are missing my point
Bidco or whoever is bidding are committing themselves to paying minimum 60p or max 67p for the STM shares. The highest price paid recenly in the market is approx 57p (which is less than current 60p market buy price).
Buying in the market at 57p would therefore save Bidco between 3p and 10p per share depending on he value of the loan notes.
Why are they not doing this??

[boystown] 23/10/2023 20:44

They're 60p to buy, 55 to sell; so it's a question of the time to receive the 60p (first half of 2024) and the chance that we may never see the 7p loan notes vs. the opportunity of getting a sure-fire 55p now and the chance to reinvest that cash elsewhere.

[camerongd53] 23/10/2023 20:22

This puzzles me

The purchaser is offering 60 to 67ish pence for each STM share. GREAT!!

The shares are currently only 55 pence

Why is the purchaser not hoovering them up at 55p and saving themselves 10p per share?

Is it possible they are doing this and not reporting it or having to report it?

Interested for your thoughts.

[steve73] 10/10/2023 13:13

Lots of discussion of DCU's on the HUR BB after their shares were converted to DCUs about six months ago. ...at least in as much as which platforms can/cannot deal with them where previously held in ISAs and SIPPs..



It may not be directly comparable.. I don't hold here but I try to keep an eye on developments as STM are trustees for my QROPS pension..

Hope this helps..

[pdosullivan] 10/10/2023 13:05

No interest payments and expected to be resolved on the first anniversary of the scheme becoming effective is how I read it.

[boystown] 10/10/2023 11:26

So if things progress well, when could we realistically expect the loan notes to be paid off?

Also, until that time, will they generate interest payments?

I don't know about anyone else but this situation is a first for me.

[schmally] 10/10/2023 10:56

The deferred consideration units are effectively loan notes, which can be held in a SIPP. However, this will depend on your SIPP provider, as loan notes will be deemed by the FCA as Non Standard Assets (not redeemable in less than 30 days), which many SIPP providers don't allow within their permitted investment mandates.

Most SIPP providers (especially platform SIPPs) don't allow NSI's to be held in their SIPPs, although it's unclear in this situation whether they would accommodate loan notes, as they can't be redeemed until the end of the deferred period when a calculation will be completed to determine the value of each note. If the provider won't allow them to be held, then what else can the SIPP member do other than in-specie transfer them to another provider that will accept them, but the costs would be too prohibitive.

I would imagine platform SIPP providers will have to accommodate these loan notes, but it's not a given.

[tabhair] 10/10/2023 07:35

Does anyone know if a Deferred Consideration Unit can be held in a SIPP?

[tabhair] 10/10/2023 07:27

Deal to close first half 2024.

[chrisdgb] 10/10/2023 07:15

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

[arthur_lame_stocks] 10/10/2023 06:44

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 09:21

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 15:39

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 19:55

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

[jubblies] 27/9/2023 18:57

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 16:59

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

[rsymes6] 27/9/2023 16:22

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 16:15

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 16:04

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

[arthur_lame_stocks] 27/9/2023 15:53

Not the best news

[rsymes6] 27/9/2023 15:30

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 15:13

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