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SVG Capital says Goldman, CPPIB propose to buy its portfolio
October 5, 2016 / 6:16 PM / a year ago

SVG Capital says Goldman, CPPIB propose to buy its portfolio

(Reuters) - Private equity firm SVG Capital Plc SVI.L said on Wednesday it received a proposal from a consortium that included Goldman Sachs Group Inc (GS.N) and the Canadian Pension Plan Investment Board (CPPIB) to acquire its investment portfolio.

A sign is displayed in the reception of the Sydney offices of Goldman Sachs in Australia, May 18, 2016. REUTERS/David Gray/File Photo

SVG, which is fending off a $1.35 billion bid from U.S. rival HarbourVest, said it was “urgently” evaluating the proposal.

The statement comes a day after SVG said it would sell half of its investment portfolio for 379 million pounds ($483 million) and wind down operations by the end of 2017.

SVG said winding down would be a better option for its shareholders, compared to accepting the HarbourVest offer.

The company’s proposal to wind down was backed by Standard Life Investments SL.L, which holds a 2 percent stake.

Standard Life supported the SVG board’s recommendation to maximize shareholder value by liquidating the portfolio in an orderly manner, a representative of the British insurer and asset manager said in an email on Wednesday.

Following SVG’s statement, HarbourVest said late on Wednesday that Aviva Investors (AV.L) and Legal & General Investment Management (LGEN.L), which together own about 7.3 percent of SVG’s shares, had withdrawn their letters of intent to vote in favor of its offer.

    The Boston-based PE firm said earlier in the day that its offer gave the British company’s shareholders a “clean break”, compared with the risks associated with winding down operations.

    SVG also said on Tuesday it had in-principle agreed to sell half of its investment portfolio to Pomona Capital and Pantheon Ventures at a 7.8 percent discount.

    If that sale goes through, shareholders should get 288 pence per share in November and another 192 pence per share early in 2017, Liberum analysts wrote in a note on Wednesday.

    SVG’s shares closed down 0.5 percent at 653.5 pence on the London Stock Exchange.

    Reporting by Noor Zainab Hussain and Mamidipudi Soumithri in Bengaluru; Editing by Amrutha Gayathri and Sriraj Kalluvila

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