IP Group ups buyback after sale of nine minority holdings
By Benjamin Chiou
Date: Monday 09 Dec 2024
(Sharecast News) - Early-stage science investor IP Group plans to increase its share buyback plan after raising £15m from the sale of minority holdings in several portfolio companies.
The company said it has agreed the sale of stakes of less than 10% each in nine portfolio companies across its balance sheet and managed funds to Lexham Partners.
The disposals are expected to be at a "small overall premium" to the balance sheet value at the half-year stage (30 June).
All proceeds will go towards its share repurchase programme, which will rise to £45m, up from the £30m previously planned.
"This transaction creates new relationships with a group of long-term investors and further validates the quality of the group's portfolio and our valuation approach," said IP Group's chief executive Greg Smith.
"The board believes the current share price significantly undervalues the group's portfolio and has decided it will allocate all cash proceeds received from this secondary sale to our ongoing buyback."
IP Group's shares have fallen by 15% so far this year to 48.1p - valuing the company at £472m - having dropped sharply in recent years since reaching a high of close to 250p back in 2015.
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