SVG Capital has provided an update regarding the proposed sale of the company’s investment portfolio and wind down. The Board says that it has agreed in principle the key commercial terms of a proposed sale of 100% of the investment portfolio to funds managed by Goldman Sachs Asset Management’s Alternative Investments & Manager Selection Group (Goldman Sachs AIMS Group) and certain investment entities managed by Canada Pension Plan Investment Board (CPPIB) for approximately £748m. This is a 6.8% discount to the value of the investment portfolio as at 31 July 2016 of £802m. SVG Capital says that, including its current net cash resources and net of all estimated costs, this equates to an approximate aggregate value per share of 680p. This is higher than HarbourVest Bidco’s full and final cash offer of 650p.
SVG Capital says that approximately £1,064m would be returned to Shareholders, should the sale complete on the agreed terms, through a series of tender offers and the winding up of the company, as follows:
- £450m tender offer before year end at 680p per share
- £300m tender offer in January/February 2017 at 680p per share
- £270m tender offer in March 2017 at 680p per share
- Final capital distribution in the winding-up process expected to be in Q2 2017.
SVG Capital’s board says that it believes the sale of the entire investment portfolio and wind down of the Company will generate superior value when compared with the final 650p a share cash offer from HarbourVest Bidco and will deliver greater certainty for shareholders when compared with the previously proposed sale of 50% of the portfolio to Pomona Capital and Pantheon Ventures. The Board has confirmed to Goldman Sachs AIMS Group and CPPIB that, subject to formalising documentation for the proposed sale, it will be recommending the proposed sale of the investment portfolio to shareholders, and no longer intends to recommend the previously proposed sale to Pomona Capital and Pantheon Ventures. It also says that completion of the sale of the investment portfolio to Goldman Sachs AIMS Group and CPPIB will be conditional on the offer from HarbourVest Bidco lapsing or being withdrawn and appropriate shareholder approvals having been obtained. Reflecting this, the board says that it continues to recommend that shareholders do not accept HarbourVest Bidco’s offer.
SVG Capital proposes sale and wind down for approximately 680p per share : SVI