HarbourVest extends deadline for SVG takeover

The development is in response to a recent recommendation by SVG's board that shareholders accept a £748m rival bid from Goldman Sachs and Canada Pension Plan Investment Board (CPPIB).

The initial deadline for SVG shareholders to accept the unsolicited HarbourVest takeover bid passed at 1pm on 6 October. Shareholders have now been given until 13 October to accept HarbourVest's offer, which values SVG shares at 650 pence apiece.

In a statement, HarbourVest also said that, in addition to its existing 8.5% stake in the LP, it had received acceptances in respect of 27.7% of SVG's shares. Furthermore, it has also received a letter of intent from a shareholder with an 8.8% stake in SVG.

SVG has repeatedly asked its shareholders to reject HarbourVest's offer, arguing that it undervalued the company and its assets. The firm's board had also recently urged shareholders to accept a competing offer from Pantheon Ventures and Pomona Capital that would see SVG wound down.

However, SVG now says it believes the Golman Sachs and CPPIB bid will generate superior value to both previous offers and intends to recommend Goldman and CPPIB's bid to shareholders once documentation for the sale has been formalised.

Goldman Sachs and CPPIB's offer, which the board has agreed key terms on, would see the consortium pay £748m for 100% of SVG's holdings and the winding down of the management company. The price represents a 6.8% discount to SVG's NAV at 31 July 2016, compared to a 7.8% discount for the Pantheon/Pomona bid and between 10.6-16.5% for HarbourVest's takeover offer.

The Pantheon and Pomona offer would see the LP sell off 50% of its investment portfolio to the acquirers. It represents a 7.8% discount to the £401m asset value of SVG's portfolio per 31 July 2016, according to the fund-of-funds. In comparison, the discount-to-asset-value SVG claims HarbourVest's bid represents was 16.5%, while HarbourVest claims its bid features a 10.6% discount.

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• Topics
• LPs
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• HarbourVest
• SVG Capital