 palisz, Thanks.
I have put the whole rns here as then in the future it appears in "search this thread" results.
IP Group plc - £119m of initial cash proceeds following completion of sale of portfolio company Featurespace to Visa
- Further £25m to be applied to 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 confirm that it will receive £119m of initial cash proceeds following the completion of the sale of portfolio company Featurespace Ltd to Visa.
The Group was the first institutional investor in Featurespace in 2012 and has invested a total of £22.9m over seven financing rounds. This transaction, which follows the sale of Garrison this year, further validates IP Group's model and our expertise in identifying and supporting science and technology businesses to successful exits.
IP Group anticipates ending the year having generated £179m of cash proceeds from exits following a strong performance on realisations, more than four times the £38.6m received in 2023.
The Group is now allocating £25m of the £119m proceeds from the Featurespace sale to the current share buyback programme. Together with the up to £15m anticipated to be received from the secondary sale announced on 09 December, this will increase the buyback programme to a total of up to £70m. Since this programme was announced in December 2023, the Group has bought back 65m shares, approximately 6% of the opening shares in issue, for a total of £28.9m.
Greg Smith, Chief Executive of IP Group, said: "Congratulations to the Featurespace team. As our biggest exit to date, we're delighted with this outcome which represents an excellent financial return for IP Group. As the most experienced and active UK based, early-stage science investor, IP Group's sustainable model has developed and supported some of the most exciting businesses in deeptech, life sciences and cleantech. We are pleased to be able to return an additional £25m of cash to shareholders through our share buyback programme."
As at 13 December 2024, IP Group had gross cash and deposits of £173.4m, long term debt of £129m, and holdings in listed companies of £159m. The Group anticipates gross cash and deposits of £279m after the receipt of the Featurespace funds which is expected before the year-end. Together, these represent approximately 62% of the Group's current market capitalisation yet account for only 29% of the Company's last-published NAV.
IP Group announced on 26 September 2024, that it expected to receive £134m total cash for its holding in Featurespace, of which £119m would be received on completion and £15m subject to deferral. At that time, the Directors anticipated that the transaction would result in an increase from the Group's FY23 net asset value of approximately £51m1 (a 70% increase), of which £37m1 was recognised in our HY24 results.
[1] Net of carried interest and deal costs |
IP Group plc - £119m of initial cash proceeds following completion of sale of portfolio company Featurespace to Visa
- Further £25m to be applied to share buyback programme7
The Group is now allocating £25m of the £119m proceeds from the Featurespace sale to the current share buyback programme. Together with the up to £15m anticipated to be received from the secondary sale announced on 09 December, this will increase the buyback programme to a total of up to £70m. Since this programme was announced in December 2023, the Group has bought back 65m shares, approximately 6% of the opening shares in issue, for a total of £28.9m. |
Need to let us know, what's happening with Istesso. |
Income for 2024 to date
Existing £57m
Feature Space £134m
IUG £9.4m
Lexham £15m
Sub-total £212m
Deferral £15m
Total £200.4m
plus return on capital deposits. |
IUG sold, 13p/share
20.8% held netting around £9,401,600 |
Date of purchase: 18/12/2024
Number of ordinary shares purchased: 500,000
Volume weighted average price paid per ordinary share (GBp): 52.0078 |
Date of purchase: 17/12/2024
Number of ordinary shares purchased: 1,100,000
Volume weighted average price paid per ordinary share (GBp): 51.9582 |
Date of purchase: 16/12/2024
Number of ordinary shares purchased: 500,000
Volume weighted average price paid per ordinary share (GBp): 52.3799 |
will the share price break the resistance at 53? |
From the announcement of the £10m buyback extension on 7/10/2024 to 13/12/2024, there have been 17,309,101 shares bought back for cancellation.
I estimate there are approx 4m more [dependant on sp] shares to buy to complete the buyback by 31/12/2024. Given that there are eight sessions left until 2025, the co has to buyback approx 500,000 shares a day.
The new £15m buyback will likely start in early 2025.
IPGroup normally issues a year end update in January. |
Date of purchase: 13/12/2024
Number of ordinary shares purchased: 500,000
Volume weighted average price paid per ordinary share (GBp): 52.8421 |
Date of purchase: 12/12/2024
Number of ordinary shares purchased: 426,806
Volume weighted average price paid per ordinary share (GBp): 51.1270 |
FOR RELEASE ON 12 December 2024
IP Group plc: AGM 2024 post-meeting shareholder engagement update
In accordance with Provision 4 of the UK Corporate Governance Code, IP Group plc (LSE: IPO) ("IP Group" or "the Company") is providing an update to the statement made on 12 June 2024 in relation to the votes cast against Resolution 7 at the Annual General Meeting ("AGM") of the Company held on 12 June 2024.
The Board was pleased that Resolution 7, the re-election of Heejae Chae as a Director, was passed by a significant majority of the shareholders who voted. However, in our statement of 12 June 2024 we noted that 21.71% of votes were cast against this resolution and committed to engage with our shareholders to try to understand the reasons behind the opposition.
We have since undertaken such an engagement exercise, inviting feedback from our shareholders in order to better understand why those who had opposed the resolution were unable to support it. The Board is grateful to those shareholders who took the time to respond to this process.
At the time of the 2024 AGM, Mr Chae held two public company board positions in addition to his role at IP Group plc, with the board position at AIM-listed SysGroup plc being Executive Chair. Mr Chae continues to hold these roles. Each of the Chair, the Senior Independent Director and the wider Nomination Committee actively monitor the other appointments of all of its Non-executive Directors and confirm that they have no concerns regarding Mr Chae's time commitment to the Company. Furthermore, the Board notes that Mr Chae continues to fully deliver against all of his responsibilities, both as a Non-executive Director of the Company and as Chair of the Remuneration Committee.
The Board is of the opinion that the contribution of Mr Chae continues to add significant value to the Company, and as such it was and remains in the interests of all shareholders and other stakeholders that Mr Chae was reappointed as a Director of the Company following the approval of Resolution 7 at the 2024 AGM. The Company will continue to engage with shareholders on this matter as appropriate. |
Date of purchase: 11/12/2024
Number of ordinary shares purchased: 192,832
Volume weighted average price paid per ordinary share (GBp): 51.4958 |
I'd hope they have done some analysis to suggest what their average price would be if they continued buyback towards the current rate for 12 months or so, higher than today as an average, and would tender at that at least. Same result, no extra cost to the company or shareholders. |
craig, I do see what you mean about not having to wait as long.
Either would do me. Thanks for the input to the bb. |
@bamboo,
I have little doubt that a larger buyback would "do its job" and boost the share price, even if it took a year to spend the money. Once you get into the 60s and 70s, many more sellers would surely appear. But that's offset by the fact that demand would come more and more from the buyback itself instead of outside investors. (i.e. apart from chartists, if you aren't buying at 50p, why are you suddenly buying at 60p?)
I'm simply a big fan of tender offers, because I tend to make more money more quickly from them. And if I've already been following the company for awhile, I am more comfortable putting more money into the tender trade. |
Great, IMO this has a long, long way to go with all that cash on board/to come on board and share buy-backs, targeting North of 60p, if it breaks that then who knows....DYOR |
Date of purchase: 10/12/2024
Number of ordinary shares purchased: 173,672
Volume weighted average price paid per ordinary share (GBp): 50.6073 |
craigso, I agree volume may well fall leading to a reduction in the max shares that can be bought back. This would mean that a supersized buyback would have take place over a period longer than eight months.
In theory a demand led squeeze could force the price upward leading to a reduction in share price/NAV discount and subsequent increase in volume. This is surely the intended effect of the buyback? |
Looking forward to seeing what the close on the week is.
If it holds this price or above It will be first time close over the weekly Supertrend (7, 2.3) since about 10th Oct 2021, it has trended down since.
Following that will need to be a take-out of the Monthly at about 66.3p that will mark a high probability of a useful trend reversal. Since Dec 2007 it has been relatively reliable as a price action predictor.
Will it work this time?
After the weekly Supertrend breakthrough it could relax back but so long as it doesn't reverse through the new lower Supertrend limit (currently about 40p but it will rise) it signals positively and run can start when it moves back up through the old limit of 50.6 approx.
Only concern is if this week has lower than average volume, ideally should move through the trend line at decent volume. Anyway, change is afoot. |
@bamboo,
Sure, it might be 1.2m shares today. But once the short sellers are sent packing and a large BB hoovered up much of the market liquidity, daily volumes would surely go down. |
Date of purchase: 09/12/2024
Number of ordinary shares purchased: 43,634
Volume weighted average price paid per ordinary share (GBp): 49.8185 |
re Tissue Regenix holding.
We got notified of the transaction twice.
I guess the first one was required as it is currently in an offer situation so falls under the rule 8 provisions.
The second standard TR-1 follows the Lexham announcement. |
Wouldn't be surprised by a tender offer to speed things up, price north of 67p by the time it happens?
Say 70p. |
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