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HarbourVest places 4.8 million shares at USD5.75 per share

HarbourVest Global Private Equity has placed 4,763,208 placing shares pursuant to the secondary placing announced on 13 May at a price of USD5.75 per share.

This follows its recent admission to the Specialist Fund Market of the London Stock Exchange.

J.P. Morgan Cazenove and Oriel Securities are the joint brokers.

In connection with the secondary placing, the company has issued 4,763,208 put rights.

The put right will entitle eligible holders to sell the number of shares acquired during the market put right offer period or pursuant to the secondary placing back to the company on 15 November 2011 at the lower of (i) USD5.75 and (ii) the estimated economic NAV per share as at 31 October 2011. Only purchases of shares on the SFM and Euronext Amsterdam during the market put right offer period will qualify for the issue of put rights.

The maximum amount which the company will make available for the purpose of repurchasing shares pursuant to the put rights is USD40m or such other amount as the company may determine subsequently and notify to investors via a regulatory information service announcement.

Based on the number of shares placed in the secondary placing and the put rights issued in relation thereto, the amount of the put offer target which remains available in respect of the market put right offer is USD12.6m. Based on the placing price and the amount of the put offer target which remains outstanding, the company would be able to issue further put rights in respect of approximately 2,193,314 shares purchased in the market during the market put right offer period.

The company will notify the market at regular intervals, at the discretion of the directors, of the level of outstanding capacity under the put offer target via a regulatory information service announcement.

Any share repurchases pursuant to the put rights will be financed from the company’s available resources, including the USD500m credit facility with Bank of Scotland which expires in December 2014. 

As at 30 April 2010, the company had an estimated NAV of USD717m (USD8.64 per share) and cash and remaining available credit facility of USD403m.

Sir Michael Bunbury, chairman of HarbourVest Global Private Equity, says: "We believe that this successful secondary placing and the commencement of the market put right offer are significant steps to encouraging ongoing liquidity in the company. Coupled with the raised profile from our new dual listing on the SFM and Euronext, we are confident that these measures will be to the long term benefit of all shareholders."

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