STM Group, a financial-services provider, has announced that it has reached an agreement on the terms of a recommended takeover offer by Jambo SRC. The deal values STM at approximately £35.6 million ($43.6 million).
Cash Offer with a Premium
Under the agreement, Jambo will pay 60 pence in cash per share, which represents a premium of around 120% to the closing price of 27.5 pence per share on July 10, the last day prior to the offer period.
Additional Benefits for Shareholders
In addition to the cash offer, shareholders will also be entitled to a deferred consideration unit. This unit has the potential to deliver an additional 7 pence per share, bringing the total acquisition value to a maximum of around GBP39.8 million. This represents a premium of approximately 144% and could deliver up to 67 pence per share.
Sale of Self-Invested Personal Pension-Scheme Companies
As part of the agreement, STM Group has also agreed to sell its self-invested personal pension-scheme companies to Pathlines Holdings. Pathlines Holdings is a company controlled by STM Chief Executive Alan Kentish. The sale is valued at GBP4.5 million.