17 Aug 2017 07:00
THIS ANNOUNCEMENT CONSTITUTES INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION (EU) NO.596/2014.
17 August 2017
IP Group PLC ("IP Group" or the "Group") - Update on Capital Raising
Update re potential conditional subscription from Beijing Galaxy World Group
On 8 June 2017, IP Group announced that Beijing Galaxy World Group Co. Ltd ("Galaxy World") had made a conditional subscription of 16,500,000 Capital Raising Shares, equal to £23.1m, under the Placing (the "Galaxy Subscription"). As mentioned in the announcement of 8 June 2017, the Galaxy Subscription was subject to Chinese foreign exchange and other regulatory approvals outside the control of IP Group and Galaxy World and there could therefore be no certainty of the investment being made. Since that time, mainstream media has widely reported a tightening by the Chinese Authorities of certain foreign exchange controls relating to outbound investment by domestic Chinese institutions.
IP Group has received confirmation from Galaxy World that they have unfortunately not received the necessary approvals to make the investment in IP Group and that they will therefore not be completing the Galaxy Subscription.
As regards IP Group's offer for Touchstone, there is now no change to the exchange ratio announced on 18 July 2017, and each Touchstone shareholder continues to be entitled to receive 2.2178 new IP Group Shares for each Touchstone share held (subject to the conditions set out in IP Group's announcement released on 18 July 2017).
The total issued share capital of IP Group remains 698,513,036 ordinary shares of 2 pence each. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the FCA's Disclosure, Guidance and Transparency Rules and under Rule 8 of the Takeover Code.
Capitalised terms used in this announcement have the meanings given to them in the prospectus published by IP Group in connection with the Capital Raising on 23 May 2017.
IP Group plc |
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Greg Smith, Chief Financial Officer | +44 (0) 20 7444 0050 | |
Liz Vaughan-Adams, Communications | +44 (0) 20 7444 0062/+44 (0) 7979 853802 | |
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Charlotte Street Partners |
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Andrew Wilson | +44 (0) 7810 636995 |
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Martha Walsh | +44 (0) 7876 245962 |
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