IP Group PLC (LON:IPO) shares were slightly higher this morning after the firm upped its offer for Touchstone Innovations PLC (LON:IVO) and reported strong first half earnings.
In a statement, the FTSE 250-listed developer of intellectual property-based businesses said Touchstone shareholders would now receive 2.2178 new IP Group shares for each Touchstone share owned, compared with its previous offer of 2.1490 shares for each Touchstone share.
READ: IP Group rebuffed in merger approach to Touchstone Innovations; launches £200mln cash-raising
The revised all-share offer values each Touchstone share at 304p, and would see Touchstone shareholders own about 34% of the combined company.
IP Group said it received support for the improved offer from Touchstone shareholders representing about 89.7% of Touchstone's share capital.
In afternoon trading, IP Group shares were up 0.86% to at 139.30p, while Touchstone shares jumped 6.35% to 291.0p.
In a separate statement also released on Tuesday, IP Group reported a strong performance in the first half to end June 2017, with the fair value of its portfolio rising to £663.0mln, up from £525.7mln a year ago and £614.0mln at the end of 2016.
The net portfolio fair value increased by £28.5mln in the first half compared with a £24.5mln drop in the first half of 2016 and a £7.0mln rise at the end of 2016
Alan Aubrey, IP Group's chief executive officer said: “The underlying performance of the Group and its portfolio companies in the first half of 2017 has been strong with a net portfolio fair value increase of £28.5m. It has been particularly encouraging that a number of our private companies including Ultrahaptics and, more recently, Creavo, have successfully completed large fundraisings following significant commercial progress, attracting new investors to their registers."