IP Group (IPO)

Down
Share Price:
73.00p
Market Cap:
£644.90m
Change Today:
-0.80p
Sector:
Financials

IP Group says Railpen proposal 'materially undervalued' the company

By Michele Maatouk

Date: Tuesday 23 Jun 2026

LONDON (ShareCast) - (Sharecast News) - IP Group confirmed on Tuesday that it has rejected a takeover proposal from shareholder Railways Pension Trustee Company, or Railpen, as it "materially undervalued" the company.
Under the terms of the proposal from Railpen - which has an 18.4% stake in IP Group - shareholders would have been entitled to 59p per share in cash, the indirect value of the Oxford Nanopore Technologies stake distributed to shareholders, and an extra 5p per share in cash through a contingent value right.

Based on the closing share price of Oxford Nanopore on Monday, the proposal, excluding the value of the CVR, implies a value of 69.4p per share.

"The board, together with its advisers, carefully considered the proposal and concluded that it materially undervalued the company, its unique framework of origination capabilities and its future prospects," IP said. "Accordingly, the board unanimously rejected the proposal."

The latest and final proposal followed three others that were also unanimously rejected by the board, which cited concerns around value, structure and deliverability. The three previous indicative offers did not include the CVR structure.

IP chair Michael Queen said: "The board has welcomed the support it has received from Railpen over the years, including their role in supporting the UK innovation ecosystem and the ambitions of the Mansion House reforms. We recognise and share the view that further progress is needed to ensure the UK can fully fund and scale its most promising companies. As the most active investor in university and other research-based companies, IP Group is committed to playing a leading role in addressing this challenge.

"Since 2024, IP Group has taken decisive action to drive cost efficiencies, realised over £250 million of cash and undertaken a buyback to retire circa 15% of its share capital.

"While the board remains confident in the company's standalone prospects, it will continue to act in the best interests of all shareholders and wider stakeholders, and remains open to engagement with any party that recognises the inherent value of IP Group's unique portfolio."

Under UK takeover rules, Railpen has until 1700 BST on 20 July to either announce a firm offer or walk away.

At 1548 BST, the shares were up 2% at 66.30p.

See latest RNS on Investegate



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IP Group Market Data

Currency UK Pounds
Price 73.00p
Change Today -0.80p
52 Week High 75.40p
52 Week Low 48.65p
Volume 2,925,665
Shares Issued 883.43m
Market Cap £644.90m

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