HarbourVest makes new £783m SVG bid

HarbourVest said in a statement the new offer was “structured in line with” a proposed £748m asset purchase from Goldman Sachs and Canada Pension Plan Investment Board (CPPIB).

The bidder said it would enable SVG to return more than 700 pence per share to shareholders, compared with a previous bid to wholly acquire the fund-of-funds' equity at 650 pence per share.

SVG's board recently advised shareholders to accept the alternative Goldman Sachs and CPPIB bid and has repeatedly asked them to reject HarbourVest's original offer, arguing that it undervalued the company and its assets.

The development is the latest twist in a month-long battle for SVG, with Pantheon Ventures and Pomona Capital also having made a proposal that would see SVG wound down. It comes shortly after HarbourVest extended the deadline of its original “full and final” cash offer to wholly acquire SVG.

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 original takeover offer.

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

HarbourVest's original share offer also remains on the table, though this would be cancelled should SVG's board choose to accept the asset-based proposal.

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• Topics
• LPs
• Performance
• Goldman Sachs
• HarbourVest
• SVG Capital
• Pantheon Ventures