IP Group PLC (LSE:IPO), the company that backs spin-out businesses, has rejected a takeover proposal from one of its largest shareholders, the railways pension scheme Railpen.
The board said the proposal, received on 16 June, materially undervalued the company and its prospects, and was turned down unanimously.
Railpen had described the offer as final, though the label carries no force under the takeover code.
The proposal comprised 59 pence per share in cash, plus the indirect value of IP Group's stake in Oxford Nanopore Technologies, distributed as a dividend.
Shareholders would also receive a contingent value right of up to 5 pence, tied to a future sale of the company's holding in drug developer Istesso.
Based on Oxford Nanopore's closing price on 22 June, the proposal implied 69.4 pence per share, excluding the contingent payment.
That represented a premium of about 6.7% to IP Group's closing price, but a discount of roughly 37.2% to its net asset value of 110.4 pence per share at the end of December.
The proposal was the fourth from Railpen, following three indicative offers since April, all rejected on concerns over value, structure and deliverability.
Railpen is leading a consortium of UK pension funds known as the Pensions Growth Alliance.
The board said it remained confident in IP Group's standalone prospects, citing more than £250 million of cash realised since 2024 and a buyback retiring about 15% of its shares.
Under the takeover code, Railpen has until 20 July to announce a firm offer or walk away.
