AIC responds to result of Edinburgh Worldwide general meeting

The Association of Investment Companies (AIC) has responded to the result of Edinburgh Worldwide’s general meeting today.

Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “Saba’s vote against the board’s exit tender proposal has deprived other shareholders of an opportunity to exit their investment at close to net asset value while retaining the potential future value from SpaceX.

“The vast majority of non-Saba shareholders wanted the tender offer proposed by the board. They have also indicated – twice – that they do not want to be trapped in a Saba-controlled vehicle. The board’s decision to proceed with two further tender offers will give shareholders opportunities to exit should they wish to ahead of any potential change to the investment mandate. Saba has already stated it would support those tender offers and we trust that they will honour that commitment.

“The result of this vote highlights the ability of a substantial minority shareholder to wield disproportionate influence. We have put forward suggestions to the FCA to address gaps in the Listing Rules that have been exposed by Saba’s actions. We have also called for shareholder voting legislation to be included in the King’s Speech to ensure all shareholders’ voices are heard.

“Shareholders still have the opportunity to vote at Edinburgh Worldwide’s AGM, where Saba has once again nominated its directors to replace the current board – despite the fact that shareholders have already rejected them twice. Platform voting deadlines will be considerably earlier than the AGM date, so shareholders will need to act quickly.”