Bosch to increase holding in Ceres Power to c18%

Portfolio company Ceres Power announces Bosch to increase holding to c18% and to raise £38m of new finance

IP Group holding valued at £75 million following £22 million partial realisation

IP Group plc (LSE: IPO) ("IP Group" or "the Group"), the developer of intellectual property-based businesses, notes that its portfolio company Ceres Power Holdings plc ("Ceres" or "Ceres Power") has today announced that Robert Bosch GmbH ("Bosch") will increase its equity shareholding in Ceres from c.4% to c.18% by subscribing for new shares as well as purchasing existing shares from current shareholders.

As part of the transaction, IP Group has generated £22.4 million through the partial sale of its holding in Ceres Power. Based on the closing price of Ceres Power of 347 pence per share yesterday, the balance of IP Group's holding is valued at £75.3 million. This represents a realised and unrealised fair value gain of £23.1 million for the year to date.

Both the new shares being issued and the existing shares being purchased from existing shareholders are being effected at a price of 320p per ordinary share, a premium of 29.5% to the volume weighted average closing mid-market share price for the 3 months to 21 January 2020 and a 7.8% discount to the mid-market share price on 21 January 2020. 

Alan Aubrey, Chief Executive of IP Group plc, said: "We are pleased to support this strategic transaction to facilitate Bosch's increased holding which we firmly believe is in the interests of the company and of all stakeholders. We're delighted to see such continued strong global interest in Ceres Power, which follows another impressive year of commercial success. Since IP Group's first investment in Ceres in 2012, the Company has gone from strength to strength and is a great example of how we've helped to develop and support a world-leading company based on scientific research carried out in the UK."

Following the sale, IP Group holds an undiluted beneficial stake of 14.1% in Ceres. Following the issue of new shares, and assuming that Weichai Power, Ceres' largest strategic shareholder, exercises its anti-dilution rights at this time, the Group's resultant shareholding in Ceres will be approximately 12.8%.

Earlier this month, IP Group announced that cash realisations during 2019 totalled more than £75 million compared to the £30 million achieved in 2018. In addition, on 2 January 2020 the Group announced a £22 million partial realisation of its holding in Oxford Nanopore Technologies Limited.

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Notes for editors

About IP Group

IP Group is a leading intellectual property commercialisation company which focuses on evolving great ideas, mainly from its partner universities, into world-changing businesses. The Group has pioneered a unique approach to developing these ideas and the resulting businesses by providing access to business building expertise, capital (through its 100%-owned FCA-authorised subsidiaries IP Capital and Parkwalk Advisors), networks, recruitment and business support. IP Group has a strong track record of success and its portfolio comprises holdings in early stage to mature businesses across life sciences and technology. IP Group is listed on the Main Market of the London Stock Exchange under the code IPO.

Group holdings in portfolio companies reflect the undiluted beneficial equity interest excluding debt, unless otherwise explicitly stated.

For more information, please visit our website at www.ipgroupplc.com.

ENDS