SVG Capital agrees proposed sale of investment folio

SVG Capital said its board has agreed in principle the key commercial terms of a proposed sale of 100% of the investment portfolio for about £748m, which compared to a value of £802m as at 31 July 2016.

This proposed sale would be to funds managed by Goldman Sachs Asset Management's Alternative Investments & Manager Selection Group (Goldman Sachs AIMS Group) and certain investment entities managed by Canada Pension Plan Investment Board (CPPIB).

The price represented a 6.8% discount to the 31 July 2016 value of the investment portfolio.

Including SVG's current net cash resources, and net of all estimated costs, this equated to an approximate aggregate value per share of 680p.

"Approximately £1,064m would be returned to shareholders, should the sale complete on the agreed terms, through a series of tender offers and the winding up of the Company," SVG said in a statement.