SVG Capital confirms £300m buyback after tender

SVG Capital announced the results of a tender offer on Tuesday, which it set out on 23 January and which closed on 20 February.

The FTSE 250 firm said 78,712,078 ordinary shares were validly tendered and, following application of the scale-back mechanism as set out in the circular, 41,958,041 ordinary shares would be purchased at a price of 715p per share, for a total cost of just under £300m.

That represented approximately 39.06% of the issued share capital of the company.

The board said shareholders who tendered more than their individual basic entitlement, being 39.06% of their holdings of ordinary shares as at the tender offer record date, were scaled back by 89.8081% of the number of excess shares tendered.

“It is anticipated that the proceeds payable to the company's shareholders for the certificated ordinary shares purchased under the tender offer will be despatched by 28 February 2017 in the form of a cheque and that CREST account holders will have their CREST accounts credited by 23 February 2017,” SVG’s board confirmed in a statement.

“As set out in the circular, the ordinary shares will be purchased by J. P. Morgan Cazenove pursuant to the tender offer and the company will buy back such ordinary shares from J.P. Morgan Cazenove.

“The company intends to cancel such ordinary shares, reducing its total issued share capital from 107,403,041 ordinary shares to 65,445,000 ordinary shares.”