Imperial Innovations Group Regulatory News (IVO)

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES OR IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.

30 August 2017

Update on Offer for Touchstone Innovations plc

Acceptances and statements of support in aggregate in excess of 90%

On 20 June 2017, IP Group plc ("IP Group") announced the terms of an offer to be made by IP Group for the whole of the issued and to be issued share capital of Touchstone Innovations plc ("Touchstone"). The offer document in relation to the Offer was posted to shareholders on 18 July 2017 ("Offer Document"). Capitalised terms used but not defined in this announcement shall have the meaning given to them in the Offer Document.

1. Acceptances and statements of support in aggregate in excess of 90%

As at 3pm on 29 August 2017, IP Group had received valid acceptances of its Offer, hard irrevocable undertakings and nonbinding letters of intent in support of its Offer in respect of Touchstone Shares representing 90.1033 per cent. of the current issued share capital of Touchstone, comprising:

a) Valid acceptances of the Offer in respect of 16,798,086 Touchstone Shares, representing approximately 10.4204 per cent. of the current issued share capital of Touchstone. Of these, acceptances have been received in respect of 16,120,000 Touchstone Shares (representing approximately 9.9997 per cent. of the current issued share capital of Touchstone), pursuant to the terms of the hard irrevocable undertaking given by Invesco, which is presumed by the Takeover Panel to be acting in concert with IP Group;

b) Hard irrevocable undertakings to accept the Offer from Woodford and Lansdowne, in respect of 32,240,413 shares representing, in aggregate, approximately 19.9997 per cent. of Touchstone's share capital; and

c) Nonbinding letters of intent from each of Invesco, Woodford, Lansdowne and Imperial College in respect of 96,211,780 shares representing, in aggregate, approximately 59.6832 per cent. of Touchstone's issued share capital.

As stated in the Offer Document, under the Companies Act, if a "takeover offer" (as defined in section 974 of the Companies Act) is made for the shares and the offeror were to acquire, or unconditionally contract to acquire, not less than 90% in value of the shares to which the offer relates and not less than 90% of the voting rights carried by the shares to which the offer relates, it could, within three months of the last day on which its takeover offer can be accepted, compulsorily acquire the remaining 10%.

The irrevocable undertakings referred to above will cease to be binding if, among other things: (i) IP Group announces (with the consent of the Panel, with respect to Touchstone) that it does not intend to make or proceed with the Offer and no new, revised or replacement Offer (or Scheme) is announced in accordance with Rule 2.7 of the Code; or (ii) on the date on which the Offer (or Scheme) lapses or is withdrawn no new, revised or replacement Offer (or Scheme) has been announced in accordance with Rule 2.7 of the Code. Each irrevocable undertaking remains binding in the event of a higher, or any other, bid or offer for Touchstone.

Further details of these hard irrevocable undertakings and letters of intent are set out in the Appendix to this announcement.

The percentage holdings of Touchstone Shares referred to in this announcement are based on there being a total of 161,204,124 Touchstone Shares in issue.

As set out in Appendix I to the Offer Document and further to IP Group's announcement on 10 August 2017, the Offer remains subject to certain conditions including the Acceptance Condition and CMA clearance which remain outstanding.

2. Update on CMA review timetable

IP Group notes the CMA's announcement dated 29 August 2017 stating that its Phase 1 review of the proposed transaction will commence today.

As stated in the CMA's press release, the deadline for the announcement of its decision on whether to refer the proposed transaction for a Phase 2 investigation is 24 October 2017.

A further announcement will be made by IP Group in due course.

Enquiries:

Pinsent Masons LLP are retained as legal advisers for IP Group.

Further Information

This Announcement is for information purposes only and is not intended to and does not constitute or form part of an offer, invitation or the solicitation of an offer or invitation to purchase, or otherwise acquire, subscribe for, sell or otherwise dispose of any securities or the solicitation of any vote or approval in any jurisdiction pursuant to the Offer or otherwise nor shall there be any sale, issuance or transfer of securities of IP Group or Touchstone pursuant to the Offer in any jurisdiction in contravention of applicable laws. The Offer will be implemented solely pursuant to the terms of the terms of the Offer Document (as clarified by this Announcement), which contains the full terms and conditions of the Offer. Any decision in respect of, or other response to, the Offer should be made on the basis of the information contained in the Offer Document (as clarified by this Announcement).

IP Group urges Touchstone Shareholders to read the Offer Document carefully because it contains important information in relation to the Offer, the New Shares and the Combined Group.

This Announcement does not constitute a prospectus or prospectus equivalent document.

Information Relating to Touchstone Shareholders

Please be aware that addresses, electronic addresses and certain other information provided by Touchstone Shareholders, persons with information rights and other relevant persons for the receipt of communications from Touchstone may be provided to IP Group during the Offer Period as required under Section 4 of Appendix 4 of the City Code.

Overseas Jurisdictions

The release, publication or distribution of this Announcement in or into jurisdictions other than the United Kingdom may be restricted by law and therefore any persons who are subject to the laws of any jurisdiction other than the United Kingdom should inform themselves about, and observe any applicable legal or regulatory requirements. Any failure to comply with the applicable restrictions may constitute a violation of the securities laws of any such jurisdiction. To the fullest extent permitted by applicable law the companies and persons involved in the Offer disclaim any responsibility or liability for the violation of such restrictions by any person. This Announcement has been prepared for the purpose of complying with English law and the City Code and the information disclosed may not be the same as that which would have been disclosed if this Announcement had been prepared in accordance with the laws of jurisdictions outside the United Kingdom.

Unless otherwise determined by IP Group or required by the City Code, and permitted by applicable law and regulation, the availability of New Shares to be issued pursuant to the Offer to Touchstone Shareholders will not be made available, directly or indirectly, in, into or from the United States or any other Restricted Jurisdiction where to do so would violate the laws in that jurisdiction and no person may vote in favour of the Offer by any means, instrumentality or form within a Restricted Jurisdiction or any other jurisdiction if to do so would constitute a violation of the laws of that jurisdiction.

Accordingly, copies of this Announcement and any formal documentation relating to the Offer are not being, and must not be, directly or indirectly, mailed or otherwise forwarded, distributed or sent in or into or from any Restricted Jurisdiction or any other jurisdiction where to do so would constitute a violation of the laws of that jurisdiction, and persons receiving such documents (including custodians, nominees and trustees) must not mail or otherwise forward, distribute or send such documents in or into or from any Restricted Jurisdiction.

The Offer may not be made directly or indirectly, in or into, or by the use of mails or any means or instrumentality (including, but not limited to, facsimile, email or other electronic transmission or telephone) of interstate or foreign commerce of, or of any facility of a national, state or other securities exchange of any Restricted Jurisdiction and the Offer may not be capable of acceptance by any such use, means, instrumentality or facilities or from within any Restricted Jurisdiction.

The availability of New Shares pursuant to the Offer to Touchstone Shareholders who are not resident in the United Kingdom or the ability of those persons to hold such shares may be affected by the laws or regulatory requirements of the relevant jurisdictions in which they are resident. Persons who are not resident in the United Kingdom should inform themselves of, and observe, any applicable legal or regulatory requirements. Touchstone Shareholders who are in doubt about such matters should consult an appropriate independent professional adviser in the relevant jurisdiction without delay.

This Announcement is not for publication, distribution, directly or indirectly, in or into the United States of America. This Announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration. No public offering of securities is being made in the United States.

Important Notices Relating to Financial Advisers

Rothschild, which is authorised and regulated by the FCA in the UK, is acting exclusively for IP Group and no one else in connection with the Offer and will not be responsible to anyone other than IP Group for providing the protections afforded to clients of Rothschild or for providing advice in relation to the Offer or any other matters referred to in this Announcement.

Numis Securities Limited which is authorised and regulated by the FCA is acting exclusively for IP Group and no one else in connection with the Offer and Numis Securities Limited will not be responsible to anyone other than IP Group for providing the protections afforded to its clients or for providing advice in relation to the Offer or any other matters referred to in this Announcement.

Cautionary Note Regarding Forward-Looking Statements

This Announcement (including any information incorporated by reference into this Announcement), oral statements regarding the Offer and other information published by IP Group and Touchstone contain certain forward-looking statements with respect to the financial condition, strategies, objectives, results of operations and businesses of IP Group and Touchstone and their respective groups and certain plans and objectives with respect to the Combined Group. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of IP Group and Touchstone about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. The forward-looking statements contained in this Announcement include statements relating to the expected effects of the Offer on IP Group and Touchstone, the expected timing and scope of the Offer and other statements other than historical facts. Forward-looking statements often use words such as "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", "hope", "aims", "continue", "will", "may", "should", "would", "could", or other words of similar meaning. These statements are based on assumptions and assessments made by IP Group, and/or Touchstone in light of their experience and their perception of historical trends, current conditions, future developments and other factors they believe appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this Announcement could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements. Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct and readers are therefore cautioned not to place undue reliance on these forward-looking statements.

There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in the global, political, economic, business, competitive, market and regulatory forces, future exchange and interest rates, changes in tax rates and future business combinations or dispositions. For a discussion of important factors which could cause actual results to differ from forward-looking statements in relation to IP Group or the Touchstone Group, please refer to the annual report and accounts of IP Group for the financial year ended 31 December 2016 and the interim accounts for the six months ended 30 June 2017 and of the Touchstone Group for the financial year ended 31 July 2016 and the interim accounts for the six months ended 31 January 2017, respectively.

Each forward-looking statement speaks only as at the date of this Announcement. Neither IP Group nor its group assumes any obligation to update or correct the information contained in this Announcement (whether as a result of new information, future events or otherwise), except as required by applicable law.

Rounding

Certain figures included in this Announcement have been subjected to rounding adjustments. Accordingly, figures shown for the same category presented in different tables may vary slightly and figures shown as totals in certain tables may not be an arithmetic aggregation of the figures that precede them.

No Profit Forecasts or Estimates

No statement in this Announcement is intended as a profit forecast or estimate for any period and no statement in this Announcement should be interpreted to mean that earnings or earnings per share or dividend per share for IP Group, Touchstone or the Combined Group, as appropriate, for the current or future financial years would necessarily match or exceed the historical published earnings or earnings per share or dividend per share for IP Group, Touchstone or the Combined Group as appropriate.

Publication on website and availability of hard copies

A copy of this Announcement is and will be available, subject to certain restrictions relating to persons resident in Restricted Jurisdictions, for inspection on the investor relations section of IP Group's website www.ipgroupplc.com/investorrelations/ by no later than 12 noon (London time) on the Business Day following this Announcement. For the avoidance of doubt, the contents of the websites referred to in this Announcement are not incorporated into and do not form part of this Announcement.

You may request a hard copy of this Announcement free of charge (subject to certain restrictions relating to persons resident in Restricted Jurisdictions) by writing to Freddie Barnfield at Numis at f.barnfield@numis.com or by calling +44 (0)20 7260 1000 during normal business hours. It is important that you note that unless you make such a request, a hard copy of this Announcement will not be sent to you. You may also request that all future documents, announcements and information to be sent to you in relation to the Offer should be in hard copy form.

If you are in any doubt about the contents of this Announcement or the action you should take, you are recommended to seek your own independent financial advice immediately from your stockbroker, bank manager, solicitor, accountant or independent financial adviser duly authorised under the Financial Services and Markets Act 2000 (as amended) if you are resident in the United Kingdom or, if not, from another appropriately authorised independent financial adviser.

Appendix

DETAILS OF IRREVOCABLE UNDERTAKINGS AND LETTERS OF INTENT