Ip Share Discussion Threads

[russman] 27/9/2024 05:52

134m more cash to play with

[bamboo2] 26/9/2024 20:27

SP rising above rising 50 and 200sma's.
Technically should be very positive.
If price can close above 55, recovery to 70 in sight.

[nigelpm] 26/9/2024 16:48

Crazy value here along with chry.

[p1nkfish] 26/9/2024 16:09

Excellent news, well done IPO.
Excess cash is a good problem to have to solve.
A happy shareholder.

[bamboo2] 26/9/2024 15:34

IP Group PLC (LSE:IPO) is set to realise a 485% return on its investment into Mike Lynch-backed fraud-detection group Featurespace following an acquisition by global payment giant Visa.

Link for complete article


FTSE 250-listed IP Group will receive £134 million in cash following the acquisition, making for a bumper return from £22.9 million worth of investments over seven financing rounds.

Currently its largest shareholder, IP Group first invested in Featurespace in 2012.


Greg Smith, chief executive of IP Group, said: “Having supported Featurespace for over ten years, we are delighted with this record exit, which represents an excellent financial return for IP Group.

“Our congratulations go to Martina King, Dave Excell and the Featurespace team.

“This transaction, which follows the sales of Garrison this year and Wave Optics in 2021, further validates IP Group’s model and our expertise in identifying and supporting businesses to successful exits.”

Following British tech entrepreneur Mike Lynch’s tragic death in August, Featurespace stated: “It is a high statistical probability that Featurespace wouldn’t be a thriving technology company without Mike… Mike’s personal investment in Featurespace supported the development of an invention that has proved fundamental in the progress of AI.”

[bamboo2] 26/9/2024 15:15

Now the Featurespace news is public, I guess we can assume the 'closed period' [if any] is over and management should be able to announce the start of the next buyback.

[dennisbergkamp] 26/9/2024 15:07

Price dropping back as people have been stuck here for sooo long! So some profit taken

Not me, nothing sold!

D

[bamboo2] 26/9/2024 15:02

The IUG deal is expected to be confirmed in September/October 2024, which leads to another cash payout for IPO of 20% of up to £40m.

IUG is expecting to distribute a substantial amount of the proceeds.

[frazboy] 26/9/2024 14:41

It's interesting that the datum used for the cash and listed assets on the BS was 31st August. ONT was priced at about 120p at that time, now 160p.

[bamboo2] 26/9/2024 14:37

Great to have this confirmed.
Well done those of you who got the sums correct!

Putting this here for future reference using 'search thread'.
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IP Group plc - Visa to acquire portfolio company Featurespace

IP Group to receive £134m cash; £51m uplift in NAV from 31 December 2023 valuation[1]

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 announce that Visa has signed a definitive agreement to acquire portfolio company Featurespace for an undisclosed sum.

As a result, IP Group expects to receive £134m total cash for its holding in Featurespace. Of this, £119m will be received on completion and £15m will be subject to deferral, as is typical for an acquisition of this type. The Directors anticipate that the transaction will 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. This further evidences the appropriateness of the Group's approach to portfolio valuation. The transaction is subject to customary closing conditions, including receipt of applicable regulatory approvals, and the Group will provide a further update following completion.

The Group was the first institutional investor in Featurespace in 2012. It has invested a total of £22.9m over seven financing rounds and is currently Featurespace's largest shareholder.

Greg Smith, Chief Executive of IP Group, said: "Having supported Featurespace for over ten years, we are delighted with this record exit, which represents an excellent financial return for IP Group. Our congratulations go to Martina King, Dave Excell and the Featurespace team. This transaction, which follows the sales of Garrison this year and Wave Optics in 2021, further validates IP Group's model and our expertise in identifying and supporting businesses to successful exits."

As at 31 August 2024, IP Group had £183.7m gross cash and deposits while the Group's holdings in listed companies were £128m, which together represented approximately 76% of the Group's market capitalisation at that date.

[1] Net of carried interest and deal costs

[brucie5] 26/9/2024 14:36

And don't forget ONT, the jewel in the crown. Highly undervalued, if that's not too oxymoronic...
That said, there's so much despondency/lack of belief around the BoD's ability or willingness to drive shareholder value that I suspect many will be selling on any up swing. Special or renewed dividends might help rekindle support but otherwise it's been hard to justify holding a share that persists in going nowhere despite share buy backs.

[bjfanc] 26/9/2024 14:27

The cash means options. It should allow them to play hardball on an other portfolio companies for sale. Plus potentially finance any of the biotechs to a later stage.

[brucie5] 26/9/2024 14:23

WShak, what's your assessment of Nav, if not identical to IPO's given estimation?

[wshak] 26/9/2024 14:15

It's worth much more than that in practical terms, IMHO.They now have a huge amount in cash relative to their market cap. Sure, they can pay some debt off, but they've already said they will look to buy back shares until the discount is less than 20%.Why would they do anything other than a huge tender offer now?NAV will only increase further as they buy the shares back at a discount.

[craigso] 26/9/2024 14:12

Not only does the deal add to NAV, but the market obviously places a much smaller discount on cash than it does on a PE asset that can't really be valued independently. (assuming management says the right things about managing that cash)

[weatherman] 26/9/2024 13:59

The deal adds £51m, about 5p to NAV, above FY23 (but less in H1 this year).

[wshak] 26/9/2024 13:50

This is transformative in terms of buybacks.They've said they will buy back up until only 20% discount if able to.

[aspringo] 26/9/2024 13:48

I'd guess as the group has a nav around 115p. And it's proving its worth, maybe the discount isn't warranted. But who knows, share prices rarely make much sense to me. Lots languish at rock bottom prices only to get taken out on the cheap.Good luck to all those long term holders.

[frazboy] 26/9/2024 13:43

Surprised the price is still rising given the strength of the rumours. Maybe the market is anticipating a return of capital?

[keyno] 26/9/2024 13:19

Big fat bonus for the board?

[craigso] 26/9/2024 13:14

Featurespace signed. Numbers look roughly as speculated.

CHRY already prepping share buyback details. I wonder what we'll get from IPO...

[frazboy] 26/9/2024 13:13

Featurespace acquired

[bamboo2] 26/9/2024 12:36

This is the first time since the end of 2021 that we have seen the 200sma stop falling.

[peterrr3] 26/9/2024 07:42

Important few days, Istesso extended the end point of their phase 2 to line up with the phase 1at the end of Sep and Featurespace closure.Meanwhile Oxford nano likely to move to Index and Centessa still looking strong.