Two life sciences companies receive cash offers
Two portfolio companies receive takeover offers; IP Group expects £13.8m cash proceeds.
- Expected cash proceeds to IP Group £13.8m
- Intelligent Ultrasound valuation £45.2m
- IP Group's expected proceeds from Intelligent Ultrasound £8.8m
- Uplift from last-reported NAV for Intelligent Ultrasound holding £4.4m (100%)
- Abliva valuation £52.4m
- IP Group's expected proceeds from Abliva £5m
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| 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
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