HarbourVest further extends offer for SVG

HarbourVest Partners has given SVG Capital shareholders a further extension to make a decision on whether to accept its final offer for the London-listed company, despite not having increased its holdings since the first extension on its offer.

The Boston-headquartered investment firm said in a statement on Friday SVG shareholders have until 1pm London time on Tuesday 18 October to accept is 650 pence-a-share final offer. HarbourVest’s offer represents a 5.5 percent discount to the listed vehicle’s closing share price of 687.5 pence on Friday.

As of 1pm last Thursday, HarbourVest owned or had received valid acceptances representing a total 36.2 percent of SVG. This included 8.5 percent that it owns through its HarbourVest Bidco vehicle.

HarbourVest launched its unsolicited bid on SVG on 12 September in an offer that values the company at a little over £1 billion ($1.3 billion; €1.2 billion), using funds from its $4.1 billion Dover Street IX secondaries vehicle. After SVG said it had reached a preliminary agreement to sell its entire portfolio to Goldman Sachs Asset Management and Canada Pension Plan Investment Board for about £748 million, HarbourVest countered with an offer of at least £783.1 million for the private equity investor’s portfolio.

SVG has repeatedly urged shareholders not to accept HarbourVest’s offer, reiterating on Friday that its board is continuing to work with Goldman and CPPIB, and is also in discussions with HarbourVest regarding the alternative proposal for its portfolio.

HarbourVest had given SVG shareholders a seven-day extension until 14 October after the initial deadline of 6 October passed with not enough investors agreeing to sell their shares to the global investment firm.