China-based internet company Beijing Galaxy World Group has pulled out of a $30m commitment to UK-based commercialisation firm IP Group’s £207m ($264m) fundraising effort, the Telegraph reported yesterday.
Galaxy Group failed to obtain regulatory approval from Chinese authorities amid a crackdown on foreign investments in the People’s Republic. The deal had been expected to close no later than today.
Founded in 2005, Galaxy Group was hoping to cooperate with IP Group to identify co-investment opportunities and to explore collaborations in China and the UK.
Earlier commitments from Singapore state-owned investment Temasek, Telstra Super, the superannuation fund for employees of telecoms firm Telstra, asset manager M&G, as well as from existing shareholders Invesco, Woodford and Landsdowne are still expected to be fulfilled.
IP Group was seeking the £207m to set up a subsidiary in Australia that has partnered a total of nine institutions across Australia and New Zealand – Monash University, Australian National University, University of Adelaide, University of Melbourne, University of Queensland, University of Sydney, University of Western Australia, University of New South Wales and University of Auckland.
Galaxy Group’s withdrawal from the fundraising is not expected to impact IP Group’s pursuit of its peer Touchstone Innovations, for which the former has so far secured the support 89.7% of the latter’s shareholders.
