In a new twist, Harbourvest has said in a press statement that it might bid for SVG’s portfolio. It followed this up with a statement this morning that said “HarbourVest announces today that it has approached the Board of SVG Capital with a view to engaging immediately with the Board to put forward a firm offer for 100% of SVG Capital’s investment portfolio. Whilst HarbourVest believes its full and final cash Offer provides Shareholders with a transaction with certainty and clarity, as opposed to a winding down of SVG Capital with its inherent costs and risks, HarbourVest is willing to propose an asset purchase transaction structured in line with the proposal by Goldman Sachs Asset Management’s Alternative Investments & Manager Selection Group and certain investment entities managed by Canada Pension Plan Investment Board. HarbourVest’s firm offer for 100% of SVG Capital’s investment portfolio would not be subject to due diligence. HarbourVest expects the timing of SVG Capital’s receipt of proceeds under HarbourVest’s firm offer would be consistent with the GS/CPPIB proposal. In line with the GS/CPPIB proposal, such firm offer would be conditional on the lapsing of HarbourVest’s cash Offer for the entire issued and to be issued ordinary share capital of SVG Capital. HarbourVest looks forward to a constructive dialogue with the Board of SVG Capital. There can be no certainty that such firm offer will be effected or as to its terms.”
SVG has responded by saying “The Company has received no offer from HarbourVest Bidco for the Asset Purchase Alternative. The Company notes HarbourVest Bidco’s comment that there can be no certainty that any firm offer will be effected or as to its terms. The Company will update shareholders in due course.”
Update 13:20 10 October 2016
At 10:18 today Harbourvest said that “HarbourVest is prepared to offer a purchase price that will be at least GBP783.1 million (the “Purchase Price”) for 100% of SVG Capital’s investment portfolio, as of 31 July 2016.
Based on SVG Capital’s public estimates of wind down costs, cash balances and aggregate break fees, HarbourVest calculates that this Purchase Price would, if returned in full, enable SVG Capital to return in excess of 700 pence per share to Shareholders.
The Asset Proposal is not subject to due diligence and, as a result, HarbourVest expects that it could complete a transaction in a timeframe that would not be longer than that proposed by Goldman Sachs Asset Management’s Alternative Investments & Manager Selection Group (“GS”) and certain investment entities managed by Canada Pension Plan Investment Board (“CPPIB”).”
At 12:18 SVG Capital said “The Company confirms it has received a proposal from HarbourVest Partners L.P. (“HarbourVest”) in relation to the Asset Purchase Transaction. The Company’s advisers will meet with HarbourVest’s advisers later today to understand the details of the Asset Purchase Transaction.
The Company notes HarbourVest’s comment that there can be no certainty that such an Asset Purchase Transaction will be effected or as to its terms.
The Company continues to work with Goldman Sachs AIMS Group and CPPIB to finalise the outstanding diligence items for the Proposed Investment Portfolio Sale announced on Thursday 6 October 2016. These outstanding items are very focused and technical in nature and are taking place concurrently with final contract negotiations. All parties are devoting significant resources to finalising terms as quickly as possible.
The Board continues to be focused on maximising shareholder value. The Company will update shareholders in due course.”
SVI : Harbourvest considering bid for SVG’s portfolio