AIC responds to Impax Environmental Markets announcement prior to the AGM and General Meeting
Four directors nominated by Saba Capital to be appointed to the board.
The Association of Investment Companies (AIC) has responded to this morning’s announcement from Impax Environmental Markets. The announcement states that, based on the latest voting information, it is expected that the current board of Impax Environmental Markets will cease to be directors of the company with effect from the end of today’s AGM and that the four directors nominated by US hedge fund Saba Capital will be appointed to the board.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “It’s disappointing that directors nominated by Saba, a single minority shareholder, have been appointed to the board, effectively taking control of this company. This looks like a step towards Saba gaining the management contract and potentially radically changing the company’s investment mandate. Just a year ago, the overwhelming majority of shareholders voted for the continuation of this company and its investment strategy. The current board have worked tirelessly to try and resolve this situation and gave all shareholders the option of exiting the company, an option which the vast majority took up.
It’s disappointing that directors nominated by Saba, a single minority shareholder, have been appointed to the board, effectively taking control of this company. This looks like a step towards Saba gaining the management contract and potentially radically changing the company’s investment mandate.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC)
“The new board of Impax Environmental Markets is obliged to act independently and in the interests of all shareholders, especially less engaged retail shareholders who haven’t voted and didn’t tender their shares. Shareholders are currently in the dark about the new board’s plans for the future of their company. We call on the new board to make clear their plans and intentions for the company as soon as possible so shareholders can understand their approach.
“This is the second time a minority shareholder has been able to set the direction of an investment trust against the wishes of the majority of other investors. We are expecting the FCA to announce a consultation on changes to the Listing Rules shortly. We are pressing for changes to address activism which benefits one shareholder by capturing the management contract. It’s also vital that the government puts in place legislation to make sure all shareholders get the information and voting rights they are entitled to.
“We would like to thank the shareholders of this company for their support and the wider industry including the British media, voting agencies, wealth managers and many others who continue to champion the investment trust industry.”
