Railpen abandons pursuit of IP Group

(Sharecast News) - Railpen said on Monday that it does not plan on making an offer for IP Group.

In a brief statement, Railpen - IP's largest shareholder - said it has engaged in discussions with the board for several months but has been unable to reach agreement on the terms of a mutually acceptable proposal.

IP Group said in a separate statement that its board has sought to "engage constructively with Railpen and its partners, recognising its fiduciary duty to maximise value for all shareholders".

IP said it was disappointed that a mutually acceptable outcome could not be reached.

"The board believes IP Group is well positioned to generate attractive long-term returns for shareholders, underpinned by a strong balance sheet and a well-funded portfolio, and remains focused on disciplined capital allocation, portfolio execution and cash realisation," it said.

"The board is grateful for the constructive engagement of shareholders throughout this process and looks forward to delivering on its strategic priorities and creating long-term value for the benefit of all stakeholders."

IP Group announced last week that it had rejected a sweetened takeover approach from Railpen, which increased its offer to 61p a share from 59p, and a pro rata share of its entire holding in Oxford Nanopore Technologies, valued at 10.3p a share.

Shareholders would also have received a contingent value right of up to 11.3p per share linked to the company's interest in clinical-stage biopharmaceutical firm Metsera.

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