SVG Capital has announced that it has sold 100% of its portfolio having today signed an asset transfer deed with Harbourvest. Harbourvest Structured Solutions III LP is paying £807m for the portfolio. The price is a small (0.6%) premium to the NAV at end July 2016. Taking that figure, adding SVG’s existing cash pile and allowing for costs (estimated at £36m) gives an estimated NAV of 715p. Harbourvest bidco will lapse its 650p offer for the company.
SVG Capital’s board expects £1.18bn will be returned to shareholders through a series of tender offers. Currently, they expect:
- up to GBP350 million returned via a tender offer before year end at 715p per share;
- up to GBP350 million returned via a tender offer in February 2017(7) at 715p per share
- up to GBP350 million returned via a tender offer in March/April 2017 at 715p per share; and
- a final capital distribution in the winding up process expected to be in Q2/Q3 2017.
The Board expects the GBP17m direct investment in a UK software company, which was acquired after 31 July 2016 and announced in the interim results released on 16 September 2016, to be sold separately, with proceeds returned to shareholders through the tender offer series.
The estimated costs figure includes advisory fees, staff costs, tender offer costs, lease costs, non-utilisation fees, liquidation costs and other contingencies. In addition, aggregated break fees and costs of approximately GBP7m are payable to Pomona Capital and Pantheon Ventures and Goldman Sachs AIMS Group and CPPIB.
SVI : Harbourvest to buy SVG portfolio for £807m