SVG Capital rallies as HarbourVest ups offer

Shares in SVG Capital rose on Monday after US rival HarbourVest Bidco proposed to buy its investment portfolio for at least £783.1m, trumping the current offer from Goldman Sachs and the Canada Pension Plan Investment Board.

HarbourVest said the offer price would enable a return of more than 700p per share to SVG’s shareholders.

The US firm said it expects “the board will be keen to explore this asset proposal given the clear value uplift it represents to shareholders”.

SVG confirmed it had received an offer and said its advisers will meet with HarbourVest’s later on Monday to understand the details of the asset purchase transaction.

Last week, 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, or 680p a share.

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.

In its most recent statement on Monday, SVG said it continues to work with Goldman and the Canada Pension plan to finalise the outstanding diligence for the proposed sale.

At 1238 BST, SVG shares were up 2.6% to 686p.