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 |
63p+ by the time a tender offer arrives. |
There's a limit in terms of what is even possible given liquidity. I'd prefer a chunky tender offer at 55p. |
£40m of buybacks once the current £15m programme ends.
Better than nothing, but somewhat underwhelmning when "the Group anticipates gross cash and deposits of £279m after the receipt of the Featurespace funds which is expected before the year-end."
I don't know what the share register looks like, but that much unspent cash must surely be attractive to corporate predators like Saba... |
 IUG news has now made it to the website.
A reasonable uplift in book value [prior share price was NAV]
Parkwalk do well out of this as they also hold IUG [approx 10%]
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Intelligent Ultrasound Group plc - Recommended cash acquisition by Surgical Science Sweden AB 19 Dec 2024
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
FOR IMMEDIATE RELEASE
19 DECEMBER 2024
RECOMMENDED CASH ACQUISITION
of Intelligent Ultrasound Group plc ("Intelligent Ultrasound")
by Surgical Science Sweden AB ("Surgical Science")
to be effected by means of a Scheme of Arrangement under Part 26 of the Companies Act 2006
Summary
· The boards of Surgical Science and Intelligent Ultrasound are pleased to announce that they have reached agreement on the terms of a recommended cash acquisition to be made by Surgical Science for the entire issued and to be issued ordinary share capital of Intelligent Ultrasound (the "Acquisition"). It is intended that the Acquisition be implemented by means of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act (the "Scheme" or "Scheme of Arrangement").
· Under the terms of the Acquisition, Intelligent Ultrasound Shareholders shall be entitled to receive:
13 pence in cash for each Intelligent Ultrasound Share held (the "Acquisition Price")
· The Acquisition Price values the entire issued and to be issued ordinary share capital of Intelligent Ultrasound at approximately £45.2 million on a fully diluted basis.
· The Acquisition Price represents a premium of approximately:
· 16.9% to the Closing Price per Intelligent Ultrasound Share of 11.13 pence on 18 December 2024 (being the last Business Day prior to the publication of this announcement);
· 31.1% to the volume-weighted average price per Intelligent Ultrasound Share of 9.91 pence for the 12-month period ended 18 December 2024 (being the last Business Day prior to the publication of this announcement); and
· 79.3% to the Closing Price per Intelligent Ultrasound Share of 7.25 pence on 17 July 2024 (being the last Business Day prior to the publication of the announcement of the sale of the Clinical AI Business).... |
palisz, Good stuff! I was away from the desk at the time, as making lunch!
Odd that IUG news has not been noted.
Not certain, but it looks like another has been sold, Abliva.
IPO have 9.5% [worth approx at t/o price $6,279,500]
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Do you think we should all pray for the shorter?
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Thanks Bamboo. I put up highlights just to be sure people know something is out.
good to follow up with whole release. |
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 |
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