Original source text
Railpen has raised its takeover proposal for IP Group PLC (LSE:IPO), offering shareholders a mix of cash, shares in Oxford Nanopore and a contingent payout linked to the biotech firm Metsera.The pension fund manager, IP Group's largest shareholder with an 18.4% stake, has made two improved proposals to the board since its initial approach on 22 June, following meetings with shareholders and directors.
Under the latest terms, IP Group shareholders would receive 61p in cash for each share held.
They would also get a pro rata share of the company's entire holding in Oxford Nanopore Technologies, worth 10.6p per IP Group share based on Nanopore's closing price of 115.9p on the last business day before the announcement.
In addition, shareholders would receive a contingent value right worth up to 11.3p per share, linked to the value of IP Group's interest in Metsera as at the end of 2029, or earlier if the stake is sold.
The Metsera interest had a net asset value of £128.2 million at the end of 2025.
The contingent value right would pay 30% of any increase above that level by the end of 2029, subject to a 10% annual return hurdle, implying a net asset value hurdle of £170.6 million.
Railpen cautioned there is no certainty that any uplift in Metsera's value will occur or that any payment will be made.
The proposal remains subject to pre-conditions including formation of a consortium, confirmatory due diligence, and a unanimous, unconditional recommendation from the IP Group board.