Chinese foreign investment controls dent IP Group fundraising
IP Group said a proposed capital raising in China had been hit by new regulatory controls in the People's Republic.
Financial Services
15,832.48
16:34 07/10/24
FTSE 250
20,853.21
16:50 07/10/24
FTSE 350
4,579.77
16:50 07/10/24
FTSE All-Share
4,536.43
16:59 07/10/24
IP Group
49.40p
16:40 07/10/24
In June, alongside the UK based intellectual property firm's offer for rival Touchstone Innovations, IP had announced that Beijing firm Galaxy World Group was contributing to a fundraising, looking to take up 16.5m capital raising shares, equal to £23.1m conditional on Chinese foreign exchange and other regulatory approvals.
However, the FTSE 250 group announced on Thursday it had received confirmation from Galaxy World it had not received necessary approvals that would allow it to proceed with the investment.
Blocking of the deal is part of an ongoing effort to control outbound Chinese investments by domestic institutions.
IP Group has therefore raised gross proceeds of £207m and its merger offer for Touchstone would see each Touchstone shareholder receive 2.2178 new IP shares for each Touchstone share held.
As of 0900 BST, IP shares had remained stable, up 0.80% to 141.60p.