Private equity group SVG Capital (LON:SVI) bucked market trends on Monday, seeing shares jump nearly 15 percent after a takeover offer from HarbourVest Partners.
The US group announced its offer of 650 pence per share for the smaller British firm today, and has yet to be accepted. SVG’s key investors, including Aviva and Old Mutual, are on board with the offer but its parent company Schroder’s remains undecided.
HarbourVest Partners bought up a further 8.5 percent of the company this morning, meaning it now controls over 50 percent of the shareholder base. In order to delist the company, with HarbourVest Partners is planning to do, it needs to control 70 percent.
SVG recently sparked concern after investing in newer, riskier US funds such as Cinven and AEA. However, HarbourVest’s managing director Peter Wilson commented, “Part of what we believe is compelling is the certainty of cash today versus the uncertainty of how the portfolio will develop in future.”
SVG is set to announce earnings on Tuesday, with shareholders being advised to wait for the figures before formally accepting the offer.
SVG shares are currently up 14.74 percent on the news, at 650.00 (1223GMT).
Global markets suffer tough Monday
The group is defying the overall downward trend of the markets today, as investors remain jittery ahead of speeches by key Fed officials this week.
The FTSE swung lower this morning and remains down 1.65 percent, with the DAX down 1.97 and the EUROSTOXX 50 down 1.98 percent. Asian markets closed generally down after Friday’s losses pushed into Monday morning, with American markets expected to follow suit.
Mining companies are faring particularly badly this morning as expectation of a Fed rate rise hits investor sentiment. Glencore (LON:GLEN) is trading down 4.08 percent, with BHP Billiton (LON:BLT) down 5.36 percent (1228GMT).
However, pharmaceutical company AstraZeneca (LON:AZN) is supporting the FTSE so far, up 0.32 percent at 4824.00. Similarly, Reckitt Benckiser (LON:RB) remains in the green up 0.14 percent.