IP Group Plc (LON:IPO) said Beijing Galaxy World Group has pulled out its plans to make an investment in the British intellectual-property firm after hitting a regulatory roadblock in China.
The Beijing company, which describes itself as an intelligent business internet platform in China with four business units in fintech, business internet and startup investments, had planned to buy 16,500,000 of shares worth £23.1mln in IP’s capital raising.
But it was unable to receive the necessary regulatory approvals after Chinese authorities tightened certain foreign exchange controls relating to outbound investment by domestic firms.
IP said there is no change to the exchange ratio for its offer to buy UK technology commercialisation company Touchstone Innovations. Each Touchstone shareholder will receive 2.2178 new IP shares for each Touchstone share held.
The total issued share capital of IP Group remains 698,513,036 ordinary shares of 2p each.
Shares in IP were little changed in morning trading, rising 0.37% to 141p.