STM agrees in principle to potential 70p-a-share takeover

STM Group said on Tuesday that it had agreed in principle with Pension SuperFund Capital on the key terms of a possible 70p-a-share cash offer, sending shares in the AIM-listed financial services provider surging.

"The board of STM Group has confirmed to Pension SuperFund Capital that, should a firm offer be made on the financial terms of the possible offer, it would be minded to recommend it unanimously to STM Group's shareholders," the company said.

However, it also noted that talks are at a "very early" stage and said there can be no certainty that any offer will ultimately be made.

STM has granted Pension SuperFund Capital access to due diligence materials.

At 0920 BST, the shares were up 64% at 54.10p.