Saba Capital Management has secured another victory in its battle over shareholder value with a series of UK investment trusts.
The largest shareholder in Herald Investment Trust has instigated a tender offer which will allow shareholders in the trust to reduce their holdings at close to the net asset value per share.
Saba has agreed to a full exit and a three-year standstill agreement during which it will not seek to change the composition of the board, nor seek to control or influence the board or company or the policies or management of the company.
Herald’s management contract is being transferred from Herald Investment Management Limited to Aberdeen Investments along with the investment team led by founder Katie Potts.
The agreement follows the bitter battle between Saba and Edinburgh Worldwide Investment Trust which resulted in five members of the trust’s board being ousted. A sixth was already retiring.
The New York based hedge fund described the HIT agreement as a “landmark outcome” for its shareholders. The deal will involve a tender offer for up to 66% of its issued share capital.
HIT marks the sixth UK investment trust of Saba’s seven original campaigns launched in December 2024 where its engagement has resulted in a material liquidity or governance outcome for shareholders.
Boaz Weinstein, founder and chief investment officer at Saba, said: “Six successful outcomes from our seven original UK campaigns — that record speaks for itself.
“Shareholders will now have real choice: immediate liquidity close to NAV, or continued exposure to the same strategy they believe in under a stronger institutional platform.
“This is what shareholder engagement looks like when boards act in the interests of the people they serve, and it is what Saba will keep demanding across the UK investment trust sector.”
Ms Potts said: “Herald has delivered a clear and successful investment strategy since 1994, and this disciplined approach will remain unchanged with Aberdeen, who I look forward to joining.
“Our focus remains firmly on the technology and communications sectors, which continue to benefit from exceptional innovation and strong long-term growth prospects. HIML is pleased to report that the share price and NAV per share of HIML’s investment trust and fund are at record levels.
“Looking ahead, we will benefit from Aberdeen’s enhanced marketing reach and will endeavour to continue to deliver above average returns for shareholders.”
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