Xenith IP Group Ltd (ASX: XIP) share price is currently 20% higher due to an ASX announcement by IPH Ltd (ASX: IPH).

Both of these businesses are legal firms that, as the names might suggest, work as intellectual property companies.

Why has the Xenith share price risen?

Earlier this morning IPH announced it had acquired around 19.9% of Xenith’s shares. IPH said it had done this to “participate in industry consolidation”, where it aims to make domestic acquisitions.

IPH purchased the shares from institutional investors at a price of $1.85 per share, for a total cost of $33 million, which has been funded from debt facilities. This compared to the current share price of $1.70 and yesterday’s share price of $1.40.

However, Xenith is currently going through its own merger with QANTM Intellectual Property Ltd (ASX: QIP), which itself was a takeover target of IPH a few months ago.

IPH doesn’t want the Xenith-QANTM merger to go ahead and wants to acquire one of them instead, although a deal would require ACCC approval.

IPH CEO Andrew Blattman said: “Since listing on the ASX in 2014, IPH has consistently demonstrated its ability to make considered, strategic acquisitions and successfully manage these businesses as part of the IPH group.”

What now?

Xenith said IPH is yet to communicate its intentions with Xenith. The Board of Xenith intends to proceed to merge with QANTM and believes in the potential benefits of the merger.

Until all of this is sorted, the growth shares in the free report below could be better share picks.


After searching through a market with over 2,000 shares, our lead expert investment analyst has narrowed it down to just 2 of his favourite rapid-growth shares in a FREE report to Rask Media readers.

Over the past five years, these two shares have gone from being 'tiny caps' to being serious contenders for the ASX 300.

Idea #1 is taking on the world with an online marketplace capable of generating serious free cash flow. This company's addressable opportunity is multiples of its current valuation.

Idea #2 is a technology business with super-sticky revenue and mission critical software. With operations around the globe, this growth stock has many years of potential.

Access the free report by clicking here now. Absolutely no credit card or payment details required.

Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).