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IP Group PLC on Monday said it has agreed the sale of minority holdings in nine portfolio to a new fund managed by Lexham Capital Partners Ltd for around £15 million. The London-based active investor in early stage science companies said the six sales from across its balance sheet and managed funds are expected to be at a ‘small overall premium’ to the half-year balance sheet value. The proceeds from the sales will be used to increase the group’s current share buyback programme by a further £15.0 million to a total of £45 million. IP Group said the board believes that its current share price ‘significantly undervalues the group’s portfolio’. The company also said it remains a ‘committed and supportive shareholder’ to the companies included in the sale, and that the shares sold represent less than 10% of the group’s holding in each company on average. IP Group said it has received £57.0 million in cash proceeds from exits in the year to date, compared with £38.6 million in 2023. Chief Executive Greg Smith said: ‘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. IP Group has performed strongly in generating cash from exits this year at or above carrying values and we remain compelled by our portfolio and the opportunity to deliver impact and returns for shareholders.’ Shares in IP Group were up 3.5% to 49.90 pence in London on Monday morning. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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