HarbourVest Plans Alternative Bid for SVG Just for Portfolio

  • Co. says offer in line with that of Goldman, CPPIB proposal
  • SVG says it’s yet to receive new offer from HarbourVest

HarbourVest Partners LLC, whose earlier offer to buy SVG Capital Plc was rejected, said it’s willing to make an alternative bid for the whole of the U.K. firm’s investment portfolio, mirroring a proposal made by Goldman Sachs Group Inc. and the Canada Pension Plan Investment Board.

The American private-equity firm said it “has approached the board of SVG Capital with a view to engaging immediately with the board to put forward a firm offer,” in an U.S. filing dated Oct. 8.

In response, the U.K. investment firm said in a statement Sunday that it has not received any offer from HarbourVest for its investment portfolio and that the company continues to work with Goldman Sachs and CPPIB on their proposal. It reiterated that the HarbourVest’s earlier offer of 650 pence ($8.10) a share undervalued the company.

HarbourVest, based in Boston, made an offer of about 1 billion pounds for SVG Capital last month which the U.K. company rejected as being too low and urged its investors not to accept. SVG has said Goldman Sachs and Canada Pension were considering making an offer that would compete with HarbourVest’s bid.

SVG said earlier in October that it will sell a 50 percent stake in its portfolio and wind down the rest of the business. The company said it will sell the stake to Pomona Capital and Pantheon Ventures for 379 million pounds and plans to make a 450 million pound tender offer before the end of the year at 700 pence per share.

HarbourVest said in its filing that the offer for SVG’s portfolio would not be subject to due diligence and would be conditional on its earlier cash offer lapsing.

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