The UK regulator of acquisitions has agreed to extend the deadline for the proposed acquisition of London AIM market listed STM Group to 22 August, following a request to allow more time for due diligence.

Earlier, on 11 July 2023, it was announced that PSF Capital GP II Limited as general partner of PSF Capital Reserve LP ("Pension SuperFund Capital") had reached agreement in principle on the key terms of a possible cash offer for the business.

That announcement came with a deadline of 8 August to announce either a firm intention to make an offer or not make an offer, according to the Code that regulates takeovers in the UK.

Howeve, while discussions are ongoing, the board of STM Group has requested that the Takeover Panel extend the deadline.

"In the light of this request, an extension has been granted by the Panel and, in accordance with Rule 2.6(a) of the Code, Pension SuperFund Capital is required, by not later than 5.00pm on 22 August 2023, either to announce a firm intention to make an offer in accordance with Rule 2.7 of the Code or to announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline may be further extended with the consent of the Panel, at STM Group's request, in accordance with Rule 2.6(c) of the Code."

"As detailed in the 2.4 Announcement and in accordance with Rule 2.5 of the Code, Pension SuperFund Capital reserves the right to offer an alternative form of consideration, in addition to or as well as the cash consideration contemplated by the Possible Offer. Pension SuperFund Capital also reserves the right to make an offer on less favourable terms than those described in this announcement (i) with the agreement or consent of the Board of STM Group; (ii) if a third party announces a firm intention to make an offer for STM Group which, at that date, is of a value less than the value of the Possible Offer; or (iii) following the announcement by STM Group of a Rule 9 waiver transaction pursuant to Appendix 1 of the Code or a reverse takeover (as defined in the Code)."

Further announcements will be made in due course, STM Group noted.