HarbourVest extends SVG Capital bid deadline

HarbourVest has extended the deadline for shareholders in private equity investor SVG Capital to accept its £1bn hostile bid for the company by a week until 13 October.

SVG put out a statement on Friday noting that HarbourVest has received valid acceptances from shares representing 27.7% of the company's issued share capital in respect of its final offer for the group. Together with the 8.5% of the company's shares held by HarbourVest Bidco this represents 36.2% of the company's issued share capital.

On Thursday, SVG said it had agreed the terms of a proposed sale of its investment portfolio to funds managed by Goldman Sachs and Canada Pension Plan Investment Board for around £748m.

The deal represents a 6.8% discount to the value of the investment portfolio at the end of July.

SVG said if completed on the agreed terms, it would lead to a £1.06bn return to shareholders, which would be done through a series of tender offers and the winding up of the company.

Chairman Andrew Sykes said: “As stated in our announcement on 4 October 2016, the board has pursued a number of options in order to create the most attractive solution for all shareholders. Following that announcement, the board received a proposal from Goldman Sachs AIMS Group and CPPIB to buy the company's entire investment portfolio.

“The board believes this proposal offers shareholders greater certainty than the previously proposed sale of 50% of the portfolio to Pomona Capital and Pantheon Ventures and will generate superior value compared with the existing 650p a share cash offer from HarbourVest Bidco. We look forward to working with Goldman Sachs AIMS Group and CPPIB to formalise the proposed investment portfolio sale shortly.”

At 1145 BST, SVG shares were up 0.1% to 668p.