Market's view on Stm Grp.
Published on April 2024
- UK and Maltese Financial Services Authorities have a timeline for approval, with Malta’s decision expected soon if there are no complications.
- Optimism exists regarding the receipt of proceeds from the sale next month.
- Concerns are raised about the terms negotiated by STM, noting that shareholders are financing the buyer with no incentivization for quick regulatory approval, posing a risk of the deal not finalizing.
- Disappointment is expressed over the lack of update on jurisdictional approvals necessary due to the nature of STM’s operations.
- Speculation about the payment timing of a 7p deferred consideration, expected around 28 May 2025.
- Clarifications are sought regarding the implications of a ‘long stop date of 28 May 2024’.
- The effective date of the scheme is anticipated to be in the second quarter of 2024.
- Discussion includes market manipulations with stock prices.
- Queries about the acquisition strategy as the purchasing entity isn’t buying shares at a lower market price which could save money.
- Debates are ongoing about the handling of deferred consideration units (loan notes), particularly whether they can be included in a SIPP, dependent on individual SIPP provider policies regarding non-standard assets.