Kevin Dowd October 18, 2016
After a month filled with offers, counter-offers and counters to those counter-offers, SVG Capital has agreed to sell its entire investment portfolio to HarbourVest Partners for 715 pence per share, a total purchase price of about £807 million. According to SVG, that sale price represents a 0.6% premium to the value of the firm’s investment portfolio as of the end of July. As a result of the deal, SVG (LON: SVI), which invests both directly in portfolio companies and in secondary stakes of other PE funds, plans to wind down its operations. The firm’s stock finished trading Tuesday at 702p per share.
After a rather hectic past five-plus weeks, how did we get to this point? Here’s a timeline of the fast-and-furious machinations:
September 12: In an unsolicited bid, HarbourVest offers 650p per share to acquire SVG; SVG urges its shareholders to reject the proposal, arguing it undervalues the firm’s portfolio.
October 5: Goldman Sachs and the Canada Pension Plan Investment Board mount a competing effort for SVG, offering to buy 100% of the firm’s investment portfolio for 680p per share.
October 6: SVG tentatively accepts the offer from Goldman Sachs and CPPIB to sell itself for 680p per share.
October 7: HarbourVest extends the deadline to accept its offer to October 13.
October 10: HarbourVest submits a new offer to acquire SVG, reported at the time to be at least 700p per share.
October 18: SVG accepts HarbourVest’s new-and-improved offer, representing a 4% premium to its closing share price last Friday.