IP Group to earn GBP14 million from life sciences portfolio takeovers

(Alliance News) - IP Group PLC on Friday said it is set to receive nearly GBP14 million following two of its portfolio life sciences companies receiving cash offers for takeovers.

The London-based active investor in early stage science companies said Intelligent Ultrasound Group PLC, the Cardiff-based ultrasound company specialising in artificial intelligence, software and simulation in which IP has a 20.8% stake, received a GBP45.2 million offer from Surgical Science Sweden AB.

As a result, IP expects to receive GBP8.8 million in cash for its holding, which would represent an uplift of GBP4.4 million from IU's last-reported net asset value at June 30.

Swedish mitochondrial disease treatment firm Abliva AB, in which IP holds a 9.5% stake, also received a cash offer from Pharming Technologies BV, valuing the business at around SEK725.3 million, or GBP52.5 million.

IP is due to receive GBP5 million total cash from the transaction, which would be represent a multiple of 1.5 times the asset's cost, and would be GBP3.7 million higher than Abliva's last-reported NAV at June 30.

Chief Executive Officer Greg Smith said: "We're pleased to see continued interest in our life sciences portfolio following the successful sale of Kynos Therapeutics in October.

"The group anticipates using approximately 20% of the proceeds from these transactions, which are expected to complete in 2025, to further increase the group's current share buyback programme, in line with its capital allocation policy."

Shares in IP Group were up 1.7% at 52.18 pence each in London on Friday morning.

By Emily Parsons, Alliance News reporter

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