HarbourVest Offers to Buy SVG Capital for About $1.3 Billion

  • SVG urges investors to take no action before Sept. 20 results
  • Shareholders will receive 650 pence per share in cash

HarbourVest Partners LLC, a Boston-based private equity firm, made an unsolicited offer to buy U.K. investor SVG Capital Plc for about 1 billion pounds ($1.3 billion) in cash.

SVG shareholders will receive 650 pence in cash for each share they hold, HarbourVest said in a statement on Monday. The offer is final and can’t be increased, the company said. SVG shares closed Friday at 566.50 pence.

HarbourVest, which has about $42 billion in assets under management, has previously purchased and de-listed private equity companies including Absolute Private Equity AG and Conversus Capital LP. The offer is 2.4 percent less than SVG’s net asset value as of April 30, according to the statement.

SVG, which invests in private equity firms, said that the bid was unsolicited and urged its investors to take no action before the company’s interim results on Sept. 20, when they’ll have the “relevant information on the company and its performance with which to consider the offer.”

SVG’s shares jumped 15 percent to 649.50 pence in London trading at 12:48 p.m., the biggest intraday gain since 2011.

Shareholder Majority

HarbourVest said a combination of shares it already owns, undertakings from shareholders who agreed to the offer and letters of intent from investors who plan to accept equates to more than 51 percent of SVG’s shares. The company said it needs 50 percent of voting shares to proceed.

“While our offer does not currently have the recommendation of the board of SVG Capital, we look forward to a constructive dialogue with them in order to crystallize the certainty of value, today and in cash, to its shareholders,” HarbourVest Managing Director David Atterbury said in the statement.

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