RCS - IP Group PLC - Two life sciences companies receive cash offers

IPAnnouncement

20/12/2024 07:00

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RNS Number : 8435Q  IP Group PLC  20 December 2024

 FOR RELEASE ON  20 December 2024

 

IP Group plc - Two quoted life sciences portfolio companies receive cash
offers

-     Anticipated further £13.8m of cash proceeds

-     Intention to use c.20% of proceeds to further increase share
buyback programme

 

IP Group plc (LSE: IPO) ("IP Group" or "the Group"), which invests in
breakthrough science and innovation companies with the potential to create a
better future for all, is pleased to note that two quoted companies in its
life sciences portfolio have received cash offers.

Intelligent Ultrasound Group plc, in which the Group has a 20.8% holding,
received a cash offer from Surgical Science Sweden AB which values the
business at approximately £45.2m. As a result, IP Group expects to receive
£8.8m of cash for its holding, which would represent an uplift of £4.4m
(100%) from the last-reported NAV at 30 June 2024. This will replace the
previously anticipated distribution, following the sale of the company's AI
business. The Group will provide a further update following completion, which
is subject to, among other things, shareholder approval.

In addition, Abliva AB, which discovers and develops medicines for the
treatment of mitochondrial disease and in which the Group has a 9.5% stake,
received a cash offer from Pharming Technologies BV which values that business
at approximately SEK 725.3m (£52.4m*).

As a result, IP Group expects to receive £5m total cash for its holding,
which would represent a multiple of 1.5 times cost and an uplift in carrying
value of £3.7m (284%) since the last-reported NAV at 30 June 2024. Completion
is conditional on customary conditions and the Group will provide a further
update following completion.

Greg Smith, Chief Executive of IP Group, said: "We're pleased to see continued
interest in our life sciences portfolio following the successful sale of Kynos
Therapeutics in October. Our congratulations go to Stuart Gall and the
Intelligent Ultrasound team and to Ellen Donnelly and the team at Abliva."

The Group anticipates using approximately 20% of the proceeds from these
transactions, which are expected to complete in 2025, to further increase the
Group's current share buyback programme, in line with its capital allocation
policy.

*GBP equivalent using 13.8311 SEK/GBP

For more information, please contact:

 IP Group plc                       www.ipgroupplc.com
 Liz Vaughan-Adams, Communications  +44 (0) 20 7444 0062/+44 (0) 7967 312125
 Portland
 Alex Donaldson                     +44 (0) 7516 729702

 

Notes for editors

 

About IP Group

IP Group accelerates the impact of science for a better future. As the most
active UK based, early stage science investor, we develop and support some of
the world's most exciting businesses in deeptech, life sciences and cleantech
(led by Kiko Ventures). Including through Parkwalk, the UK's largest growth
EIS fund manager, we back world-changing innovation emerging from leading
universities and research institutions. Our specialist investment team
combines sector expertise with an international approach. Together we have a
strong track record of success, having backed high-profile companies including
Oxford Nanopore Technologies plc, First Light Fusion, Hysata, and Oxa. IP
Group is listed on the Main Market of the London Stock Exchange under the code
IPO. For more information, please visit our website at www.ipgroupplc.com
(http://www.ipgroupplc.com/) .

 

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