IP Group has rejected a revised takeover proposal from its largest shareholder, Railpen, saying the terms materially undervalue the London-listed science investor and its outlook. The sweetened approach values the company at about £630 million excluding a contingent element, with a potential total value of roughly £730 million.
Highlights
- IP Group's board unanimously rejected Railpen's revised takeover proposal of 71.3 pence per share, citing significant undervaluation of the company.
- Railpen's offer includes 61 pence per share in cash, 10.3 pence per share from Oxford Nanopore Technologies, and a contingent value right of 11.3 pence per share linked to Metsera performance by 2029.
- Railpen, managing over £34 billion and holding an 18.4% stake in IP Group, faces a firm offer deadline of July 27 after a UK Takeover Panel extension.
Revised bid terms and deadline
As reported by Reuters, IP Group's board on Monday unanimously turned down Railpen's revised proposal of 71.3 pence per share after concluding that it significantly undervalues the company and its prospects.The offer comprises 61 pence per share in cash and a pro rata share of IP Group's entire stake in Oxford Nanopore Technologies, valued at 10.3 pence per share. It also includes a contingent value right of up to 11.3 pence per share tied to IP Group's interest in clinical-stage biotech firm Metsera, subject to performance thresholds being met by the end of 2029.
Excluding the contingent value right, the proposal values IP Group at about 71.3 pence per share, representing a premium of roughly 10.2% to the stock's Monday close of 64.7 pence. Railpen must announce a firm offer or withdraw by July 27 after receiving a seven-day extension from the UK Takeover Panel.
Implications for investors and the UK market
Railpen manages more than £34 billion in assets for railway pension schemes and holds an 18.4% stake in IP Group, making its approach significant for the company's shareholder base and for UK public market deal activity.The rejection keeps attention on whether Railpen improves its terms further or walks away before the deadline. For investors, the board's stance signals confidence in the value of IP Group's portfolio, including its Oxford Nanopore holding and its exposure to Metsera.
Our earlier article covered a large secondary share sale in BT Group, marketed via an accelerated bookbuild and set to settle on July 23. We noted that the transaction involved an existing shareholder monetizing most of its stake, with no new BT shares issued and no proceeds going to the company, making it a test of investor demand rather than a capital-raising event for BT.
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