UK's IP Group rebuffs Railpen's revised 71.3 pence proposal

Oxford Nanopore Technologies

20/07/2026 18:27

July 20 (Reuters) - IP Group's IPO.L board of directors on Monday unanimously rejected a sweetened 71.3 pence-per-share takeover proposal from its largest shareholder, Railpen, citing significant undervaluation of the company and its prospects. 
The revised proposal valued the London-listed early-stage science investor at about £630 million ($845.27 million), excluding a contingent element that could have taken the total to about £730 million.
Railpen had offered IP Group shareholders 61 pence per share in cash, and a pro rata share of the company's entire Oxford Nanopore Technologies ONT.L stake valued at 10.3 pence per share.
The proposal also included a contingent value right (CVR) of up to 11.3 pence per share linked to IP Group's interest in Metsera — a clinical-stage biotech firm — subject to performance thresholds being met by end-2029.
Excluding the CVR, the offer valued IP Group at 71.3 pence per share, a premium of about 10.2% to its Monday close of 64.7 pence.
Railpen, which manages more than £34 billion in assets for railway pension schemes and holds 18.4% in IP Group, declined to comment. 
Railpen must announce a firm offer or withdraw by July 27 following a seven-day extension granted by the UK Takeover Panel.
     
($1 = 0.7453 pounds)

(Reporting by Nithyashree R B and Roshni Srivastava in Bengaluru; Editing by Jonathan Ananda)
((NithyashreeRB@thomsonreuters.com))