State-backed life sciences company Malin Corporation said its estimated intrinsic value per share continued to decline in the first half of the year, as the value of key investments fell.
In interim results, the company, in which the State holds an 11.3 per cent stake through the Ireland Strategic Investment Fund (Isif), said its intrinsic value per share fell to €6.44 at the end of June, down from €6.56 at the end of December. Malin said there was a further decline of around 2 per cent between the end of June and August 22nd, to €6.33.
The fall has been attributed to the reduced share price of Poseida, the Nasdaq-listed clinical stage biopharma company in which Malin holds a 12 per cent stake, and a reduction in the value of its 15 per cent interest in Viamet, along with foreign exchange movements.
Corporate cash operating expenses for the first half of 2024 were €1.3 million.
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Malin currently has a cash balance of about €63 million, a figure that has benefited from the recently completed sale of its stake in CG Oncology, generating €28.5 million for the company and representing a 175 per cent gain.
It is proposing to return around €45 million to shareholders via a tender offer in the fourth quarter of the year.
However, the share capital reduction necessary to achieve this buyback must be approved by shareholders and confirmed by the High Court. Malin is holding an extraordinary general meeting in September on the matter.
“We executed on our business strategy during the first half of 2024, with our investee companies continuing to achieve or progress towards further important clinical, operational and transactional milestones,” said executive director Fiona Dunlevy.
“With a current cash balance of approximately €62.9 million, Malin is now progressing with the necessary preparatory steps ... ahead of an intended tender offer later this year to return approximately €45 million to shareholders.”
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