MARKET REPORT: Top financier swoops on pensions minnow STM Group

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

The 60-year-old ran the private equity firm Duke Street Capital from 1998 to 2005, served as special economic adviser 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 company Pension SuperFund Capital, which consolidates pension pots, has set its sights on a stock market minnow.

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

Shares rose 72.73 percent, or 20 pence, to 47.5 pence.

The share floated at 50 pence in March 2007, valuing the company at £17.6 million.

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

“Discussions about the potential offer are at a very early stage,” STM said in a statement. “Therefore, there can be no certainty at this point that an offer will eventually be made.”

Despite rampant wage growth fueling inflation and interest rate fears, the FTSE 100 rose 0.12 percent, or 8.73 points, to 7282.52, while the FTSE 250 rose 0.62 percent, or 112.13 points to 18140.09.

Dowlais, the engineering group that spun off from Melrose and went public in April, plunged into the red after a disappointing broker rating.

Citi started covering the stock with a “sell” recommendation and set a price target of 97 pence.

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

Stock watch – Kingspan

Kingspan shares bounced back from recent losses after the building insulation specialist got off to an excellent start to 2023.

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

It said America was overtaking Europe and there was a growing interest in AI projects.

Although the housing sector was hit globally by high interest rates, demand for housing remained strong.

The shares rose by 16.01 percent, or €9.15, to €66.30.

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

Shares fell 5.88 percent, or 7.35 pence, to 117.65 pence.

The chief financial officer at Travis Perkins will retire in 2024, stepping down from the board after seven years in the position. Alan Williams is replaced by Duncan Cooper, his counterpart at Crest Nicholson.

Travis Perkins shares rose 1.49 percent, or 11.8 pence, to 804.4 pence, while Crest Nicholson rose 0.62 percent, or 1.1 pence, to 179.7 pence.

Ahead of the AGM, British Land said business continued “despite macroeconomic uncertainty”. The developer rented 552,000 square feet between April 1 and June 30. Shares rose 3.83 percent, or 11.6p, to 314.8p.

With the row between makeup group Revolution Beauty and major shareholder Boohoo raging, a peace agreement may be on the horizon.

A potential compromise could see Bob Holt step down as CEO of Revolution, Sky News reported. Revolution shares fell 1.66 percent, or 0.5 pence, to 29.7, and Boohoo rose 3.03

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

Revolution shares fell 1.66 percent, or 0.5 pence, to 29.7, and Boohoo rose 3.03 percent, or 1.02 pence, to 34.65 percent, or 1.02 pence, to 34 .65.

Holt was impeached by Revolution stockholders led by Boohoo at the annual meeting, but was reinstated just hours later.

There was little to cheer about at Restaurant Group after an activist investor called for them to leave.

Irenic Capital Management, which owns 2.4 percent of the owners of Wagamama and Frankie & Benny’s, accused Ken Hanna of being “partisan” to shareholders pushing for change. Shares fell 0.66 percent, or 0.25 pence, to 37.9 pence.

Ex-chairman of Heathrow and Meggitt, Sir Nigel Rudd, has taken on the same role at an AIM-listed investment firm.

Rudd, labeled ‘Sir Sell-Off’ for overseeing the sale of UK companies such as Pilkington and Boots, joined the life sciences-focused Intuitive Investments Group. Stocks added 10 percent or 0.5 pence to 5.5 pence.

Pawn broker H&T said business was booming for many households. Shares rose 3.08 percent, or 13 pence, to 435 pence.