MARKET REPORT: Top financier swoops on pensions minnow STM Group

City bigwig Edmund ‘Edi’ Truell is closing in on a bid to buy an AIM-listed pensions administrator in a deal worth £41.5million.

The 60-year-old led the private equity firm Duke Street Capital from 1998 to 2005, worked as a special economic advisor to Boris Johnson when he was Mayor of London and backed the gene and cell therapy start-up ViroCell Biologics two years ago.

Now his venture Pension SuperFund Capital, which consolidates retirement pots, has set its sights on a stock-market minnow.

It reached ‘agreement in principle on the key terms of a possible cash offer’ for STM Group at a price of 70p a share – a significant premium to STM Group’s closing share price of 27.5p on Monday.

Shares jumped 72.73 per cent, or 20p, to 47.5p.

Target: City bigwig Edmund ‘Edi’ Truell’s venture Pension SuperFund Capital reached ‘agreement in principle’ for STM Group at a price of 70p a share

The stock floated at 50p in March 2007, which valued the business at £17.6million.

STM Group told Pension SuperFund Capital that if a firm offer was to be made then it would be recommended to shareholders. 

‘Discussions in relation to the possible offer are at a very early stage,’ STM said in a statement. ‘There can accordingly, at this time, be no certainty that any offer will ultimately be made.’

Despite rampant wage growth fuelling fears about inflation and interest rates, the FTSE 100 rose 0.12 per cent, or 8.73 points, to 7282.52, while the FTSE 250 was up 0.62 per cent, or 112.13 points, to 18140.09.

Dowlais, the engineering group spun off from Melrose and listed in April, sank into the red following a disappointing broker rating.

Citi initiated its coverage of the stock with a ‘sell’ recommendation and set a target price of 97p.

The broker warned that battery electric vehicles (BEVs) could be a risk as margins come under pressure. 

Stock Watch – Kingspan

Kingspan shares recovered from recent losses after the building insulation specialist made a stellar start to 2023.

The group, which makes insulated panels and raised floors, expects to report a record profit of around £371million for the first half. 

It said the Americas outpaced Europe and there was growing interest in AI projects.

While high interest rates hit the residential sector worldwide, it said housing demand remained strong. 

Shares were up 16.01 per cent, or €9.15, to €66.30.

It added that many of the components Dowlais competes in could lose ground in the BEV world. 

Shares slid 5.88 per cent, or 7.35p, to 117.65p.

The finance boss at Travis Perkins will retire and step down from the board in 2024 after seven years in the job. Alan Williams will be replaced by Duncan Cooper, his counterpart at Crest Nicholson.

Travis Perkins shares rose 1.49 per cent, or 11.8p, to 804.4p, while Crest Nicholson was up 0.62 per cent, or 1.1p, to 179.7p.

Ahead of its AGM, British Land said business was ticking along ‘despite macroeconomic uncertainty’. The property developer leased 552,000 sq ft between April 1 and June 30. Shares gained 3.83 per cent, or 11.6p, to 314.8p.

With the row between make-up group Revolution Beauty and major shareholder Boohoo raging, a peace deal may be in the offing. 

A potential compromise could see Bob Holt step down as chief executive of Revolution, Sky News reported. Revolution shares fell 1.66 per cent, or 0.5p, to 29.7, and Boohoo was up 3.03 

A potential compromise could see Bob Holt step down as chief executive of Revolution, Sky News reported. 

Revolution shares fell 1.66 per cent, or 0.5p, to 29.7, and Boohoo was up 3.03 per cent, or 1.02p, to 34.65 per cent, or 1.02p, to 34.65.

Holt was ousted by Revolution shareholders led by Boohoo at its annual meeting – but was reinstated just hours later.

There was little to cheer at Restaurant Group after an activist investor called for its chairman to be go. 

Irenic Capital Management, which holds 2.4 per cent in the owner of Wagamama and Frankie & Benny’s, accused Ken Hanna of showing ‘partiality’ towards shareholders pushing for changes. Shares sank 0.66 per cent, or 0.25p, to 37.9p.

Ex-Heathrow and Meggitt chairman Sir Nigel Rudd has taken up the same role at an AIM-listed investment company. 

Rudd, who was labelled ‘Sir Sell-Off’ for overseeing the sale of British firms such as Pilkington and Boots, joined life sciences-focused Intuitive Investments Group. Shares added 10 per cent, or 0.5p, to 5.5p.

Pawnbroker H&T said business was booming in a sign of the times for many households. Shares rose 3.08 per cent, or 13p, to 435p.

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