SVG Capital receives offer for entire investment portfolio

SVG Capital has received a proposal for the acquisition of its entire investment portfolio from investment funds managed by Goldman Sachs Asset Management's Alternative Investments & Manager Selection Group and entities managed by Canada Pension Plan Investment Board.

The group said the proposal was being evaluated “urgently” and that it will update the market as soon as possible.

Earlier on Wednesday, SVG said it had agreed to sell 50% of its investment portfolio to private equity firms Pomona Capital and Pantheon Ventures for £379m and wind down operations by the end of next year as it looks to fend off a hostile takeover from HarbourVest.

The deal, which is subject to approval by an investor vote, represents a 7.88% discount to the 31 July 2016 asset value. However, it is still better than the 11.5% discount that US rival HarbourVest’s 650p per share offer represents.

The company announced plans for a £450m tender offer before the year-end at 700p per share and said it will launch an additional £300m offer in early 2017.

Chairman Andrew Sykes said: “The proposed asset sale to Pomona Capital and Pantheon Ventures is supported by all members of the board, and represents the first step in a process which is designed to maximise value for shareholders through an orderly wind down of our portfolio, to generate superior value compared with the existing 650p a share cash offer from Harbourvest Bidco.

“We look forward to working with Pomona Capital and Pantheon Ventures to formalise the proposed asset sale in the coming weeks."

The company said its board continues to recommend that shareholders do not accept HarbourVest's offer.

At 1425 BST, the shares were down 1% to 667.50p.