Oct 5 (Reuters) - U.S. private equity firm HarbourVest Partners said its offer for smaller rival SVG Capital would give the British firm’s shareholders a “clean break”, with HarbourVest absorbing the risks and uncertainties associated with winding down operations.
SVG, which rejected HarbourVest’s bid last month, said on Tuesday it would sell half of its investment portfolio for 379 million pounds ($482 million) and wind down operations by the end of 2017. SVG’s statement came after HarbourVest earlier on Tuesday urged shareholders to accept its offer.
“The SVG Capital proposals begin and end with complexity and conditionality, offer little clarity as to value, are non-binding and carry significant market and execution risk,” HarbourVest’s Managing Director David Atterbury said on Wednesday.
Harbourvest, which said on Sept. 12 that it was taking advantage of a weaker pound to make a bid for SVG, offered 650 pence per share in cash, valuing the company then at $1.35 billion.
SVG said on Monday that it was in talks with a consortium that included Goldman Sachs and the Canadian Pension Plan Investment Board (“CPPIB”). (Reporting by Noor Zainab Hussain in Bengaluru; Editing by Amrutha Gayathri)