LONDON (ShareCast) - (Sharecast News) - IP Group said on Monday that it has rejected a sweetened takeover approach from its largest shareholder, Railpen, as it continues to "significantly undervalue" the company.
Railpen announced on Friday that it had 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 receive a contingent value right of up to 11.3p per share linked to the company's interest in clinical-stage biopharmaceutical firm Metsera.

IP Group said: "The board, together with its advisers, carefully considered the revised proposal and concluded that it continues to significantly undervalue the company, its unique framework of origination capabilities and its future prospects."

However, IP also said that it "recognises its obligation to maximise value for shareholders as well as the meaningful opportunity represented by the creation of a scaled, world-class venture and scale-up investment manager, supported by a consortium of pension funds and capable of delivering sustainable value creation over time".

As a result, and in order to assess whether an acceptable proposal can be tabled, the board has requested and been granted a seven-day extension to 27 July to the 'put up or shut up' deadline by which Railpen must either make a firm offer or walk away.

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