STM, which owns SIPP firms Options and London & Colonial Pensions, will be taken over through a court-sanctioned scheme of arrangement.

As part of the deal STM Group chief executive Alan Kentish will buy STM’s SIPP businesses for £4.5m through his company Pathlines Holdings Ltd.

STM shareholders will receive 60p per share in cash, plus a deferred consideration unit which may be up to 7p per share in cash. STM’s closing price when the offer was first made on 10 July was 27.5p.

The cash element of the deal values STM at approximately £35.6m which will rise to approximately £39.8m if the deferred consideration reaches its full value. It will only be less if STM declares any dividend or similar payout to shareholders before the deal is approved by shareholders and the court.

Nigel Birrell, the chair of STM, said: "While we believe that there are significant growth and value realisation opportunities for STM in the short to medium term, we recognise that there are uncertainties and risks which may impact STM's ability to both optimise growth as a stand-alone quoted entity, and to execute a realisation strategy of certain parts of the business.

“We acknowledge the additional commercial benefits which could be obtained as part of a larger group, such as Pension SuperFund Capital, whose management team has a clear vision to deliver a complete solution to pension savers and members.”

Edmund Truell, co-founder of Pension SuperFund Capital, said: "This exciting investment aligns with our wider market aim to provide a complete solution, worldwide, to pension savers and sponsors and improve pensioner outcomes in an aligned way.

“We strongly believe our track record and stewardship will enable us to provide increased security and value-for-money benefits to members, while also helping to deliver the upside that the Mansion House reforms intend."

STM was admitted to trading on AIM in 2007 and has grown to employ 290 staff with operations in the UK, Gibraltar, Malta, Spain and Australia.

It has acquired a number of businesses over the last decade, including London and Colonial Holdings Ltd, Carey Administration Holdings Limited, businesses providing SSAS administration and consultancy services from Berkeley Burke and most recently the SIPP and SSAS book of Mercer Ltd.

STM has also launched organic initiatives, such as the development of international retirement solutions for the expatriate market and continuing development of its in-house administration.

Last month STM reported a pre-tax profit of £100,000 for the six months ended 30 June, down from £500,000 in 2022.