News & Analysis

HarbourVest turns up the heat on SVG as deadline nears

The US-based private markets investment firm noted that SVG has missed its own deadline to update the market on talks with potential rival bidders.

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HarbourVest Partners is turning up the pressure on London-listed private equity investor SVG Capital – the target of its £1 billion ($1.3 billion; €1.2 billion) unsolicited bid – noting that it has so far failed to update the market on talks concerning a possible rival offer despite saying it would do so on Tuesday morning.

HarbourVest has set a first close deadline of 1pm UK time on 6 October for shareholders to accept their 650 pence-a-share offer.

“HarbourVest notes that despite the Board of SVG Capital stating on 3 October 2016 that it would be in a position to update shareholders as to its discussions with other parties by this morning, no announcement has been made,” HarbourVest said in the statement.

“By contrast, HarbourVest’s full and final cash offer of 650 pence per share provides shareholders with clarity and certainty.”

SVG Capital said on Monday that it is in “detailed discussions” with a consortium consisting of Goldman Sachs and the Canada Pension Plan Investment Board over the possible sale of its investment portfolio.

SVG’s share price was up 0.5 percent at 683.50 pence in early afternoon trading on Tuesday.

A spokesman for SVG declined to comment on HarbourVest’s statement.