HarbourVestPartners LLC said Oct. 10 that it is willing to offer a purchaseprice of at least £783.1 million for 100% of SVG Capital plc's investment portfolio, as of July 31.
The proposed asset purchase transaction follows SVGCapital's agreementin principle over a proposed sale of its entire investment portfolio to fundsmanaged by Goldman Sachs Asset Management's Alternative Investments &Manager Selection Group and certain investment entities managed by the CanadaPension Plan Investment Board for approximately £747.8 million.
HarbourVest noted that SVG had indicated a willingness foran asset purchase transaction and that SVG will retain the inherent costs andrisks of winding down SVG Capital that, were the prior offer proposed byHarbourVest to be effected, would otherwise be assumed by HarbourVest. Theasset purchase transaction is subject to the lapsing of HarbourVest StructuredSolutions III LP's unsolicited offer to acquire the entire issued and to beissued ordinary share capital of SVG for approximately £1.02 billion.
HarbourVest estimated that the new purchase price, if returnedin full, would enable SVG to return in excess of 700 pence per share toshareholders, compared to HarbourVest's initial 650-pence-per-share offer,which SVG deemed too low. HarbourVest noted that it would not take longer tocomplete its asset purchase proposal, than the timeframe laid out by Goldmanand the CPPIB.
The HarbourVest prior offer will open for acceptance until 1 p.m.London time on Oct. 13.