UK’s IP Group gets sweetened takeover offer from top investor Railpen

Industry:    7 days ago

Railpen, the largest shareholder in Britain’s IP Group, said on ​Friday it has made a sweetened takeover offer ‌for the early-stage science investor, nearly a month after IP Group rejected an earlier approach.

  • Under the latest proposal, IP ​Group shareholders would receive 61 pence per share ​in cash, up from 59 pence per ⁠share earlier, and a share of the company’s ​entire Oxford Nanopore Technologies stake, valued at 10.6 pence ​per IP Group share.

  • Shareholders would also receive a contingent value right of up to 11.3 pence per share tied ​to an increase in the value of IP ​Group’s stake in Metsera — a clinical-stage biotech firm — by the end ‌of 2029.
  • Excluding the contingent portion, the offer implies a value of about 71.6 pence per IP Group share, representing a premium of about 10.8% to their ​last close ​of 64.6 ⁠pence on Friday.
  • Railpen, which manages more than £34 billion ($45.74 billion) in assets for railway ​pension schemes, holds an 18.4% stake ​in IP ⁠Group.
  • IP Group rejected the last offer on June 23 saying it “materially undervalued” the company. Prior to that, ⁠Railpen ​had approached IP Group three ​times.
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