Two IP Group investees receive cash offers
Science investor announced on Friday that two of its quoted life sciences portfolio companies have received cash offers, with anticipated proceeds of £13.8m.
The FTSE 250 company said it planned to allocate about 20% of the proceeds to expand its share buyback programme.
Intelligent Ultrasound Group, in which IP Group holds a 20.8% stake, had accepted a cash offer from Surgical Science Sweden, valuing the business at £45.2m.
IP Group said it expected to receive £8.8 million from the deal, representing a 100% uplift on its last-reported net asset value as of 30 June.
The sale replaced a previously-expected distribution from Intelligent Ultrasound's AI business, and remained subject to shareholder approval.
Additionally, Abliva, in which IP Group holds a 9.5% stake, had received a cash offer from Pharming Technologies, valuing the company at SEK 725.3m (£52.4m).
IP Group said it anticipated a £5m return, representing a 1.5x multiple on cost and a 284% increase on the last-reported net asset value.
Completion of that transaction remained subject to customary conditions.
"We're pleased to see continued interest in our life sciences portfolio following the successful sale of Kynos Therapeutics in October," said chief executive officer Greg Smith.
"Our congratulations go to Stuart Gall and the Intelligent Ultrasound team and to Ellen Donnelly and the team at Abliva."
The group said it anticipated using about 20% of the proceeds from the transactions, which were expected to complete in 2025, to further increase its current share buyback programme, in line with its capital allocation policy.
At 0822 GMT, shares in IP Group were up 1.26% at 51.95p.
Reporting by Josh White for Sharecast.com.
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