(Adds HarbourVest's response)
Oct 5 Private equity firm SVG Capital Plc
said on Wednesday it received a proposal from a
consortium that included Goldman Sachs Group Inc and the
Canadian Pension Plan Investment Board (CPPIB) to acquire its
SVG, which is fending off a $1.35 billion bid from U.S.
rival HarbourVest, said it was "urgently" evaluating the
The statement comes a day after SVG said it would sell half
of its investment portfolio for 379 million pounds ($483
million) and wind down operations by the end of 2017.
SVG said winding down would be a better option for its
shareholders, compared to accepting the HarbourVest offer.
The company's proposal to wind down was backed by Standard
Life Investments, which holds a 2 percent stake.
Standard Life supported the SVG board's recommendation to
maximise shareholder value by liquidating the portfolio in an
orderly manner, a representative of the British insurer and
asset manager said in an email on Wednesday.
Following SVG's statement, 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percent of SVG's shares, had withdrawn their letters of intent
to vote in favour of its offer.
The Boston-based PE firm said earlier in the day that its
offer gave the British company's shareholders a "clean break",
compared with the risks associated with winding down operations.
SVG also said on Tuesday it had in-principle agreed to sell
half of its investment portfolio to Pomona Capital and Pantheon
Ventures at a 7.8 percent discount.
If that sale goes through, shareholders should get 288 pence
per share in November and another 192 pence per share early in
2017, Liberum analysts wrote in a note on Wednesday.
SVG's shares closed down 0.5 percent at 653.5 pence on the
London Stock Exchange.
($1 = 0.7845 pounds)
(Reporting by Noor Zainab Hussain and Mamidipudi Soumithri in
Bengaluru; Editing by Amrutha Gayathri and Sriraj Kalluvila)