(Adds Breakingviews link, updates share price)
Oct 6 Britain's SVG Capital accepted an
offer from Goldman Sachs and the Canada Pension Plan
Investment Board on Thursday, saying it gave shareholders a
better return than a hostile bid from U.S. private equity rival
If the Goldman consortium bid for SVG's entire investment
portfolio prevails, shareholders would be able to sell stock at
680 pence each in a series of tenders over the coming months and
the firm would be wound up in the second quarter next year.
Boston-based firm HarbourVest launched its SVG bid on Sept.
12 at 650 pence a share, saying it was taking advantage of a
weaker pound, following the Brexit vote, to snap up assets with
good short-term growth prospects.
SVG shares closed 0.45 percent lower at 667.50 pence.
"We believe it is the most favourable offer for SVG Capital
shareholders after considering the additional risks and timing
involved," Liberum analysts wrote in a note for clients.
HarbourVest said late on Wednesday that Aviva Investors
and Legal & General Investment Management, which
together own about 7.3 percent of SVG's shares, had both
withdrawn letters of intent to vote for its offer.
Investors have been frustrated for years by Britain's listed
private equity sector because it has traded at a discount to the
value of its assets, prompting some activist investors to step
SVG rejected HarbourVest's hostile approach last month
saying it was taking to other suitors who might offer a better
On Tuesday, SVG said it had agreed to sell half its
portfolio to Pomona Capital and Pantheon Ventures but this was
then trumped the same day by the Goldman consortium offer.
SVG said the new bid was equivalent to a 6.8 percent
discount to the value of its investment portfolio at the end of
July, better than the 11.5 percent discount offered by
SVG said Goldman Sachs and the Canadian pension plan would
pay about 748 million pounds ($950 million) for its investment
portfolio which would allow it to return 1.06 billion pounds to
shareholders once net cash was included.
(Reporting by Noor Zainab Hussain in Bengaluru; editing by