IP Group plc (IPO.L), a British investment company, Monday said it has agreed to sell its minority stakes in nine portfolio companies across its balance sheet and managed funds to a new fund managed by Lexham Partners.
IP Group expects proceeds of 15 million pounds from 6 balance sheet holdings included in the transaction, at a small overall premium to the half-year balance sheet value. Using this proceeds, the company intends to increase its current share buyback programme to 45 million pounds, if these sales complete as planned.
"The Board believes the current share price significantly undervalues the Group's portfolio and has decided it will allocate all cash proceeds received from this secondary sale to our ongoing buyback," said Greg Smith, Chief Executive of IP Group.
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