The time has come for Saba to “do the decent thing” and respect shareholders’ views

Following Saba Capital’s rejection of the continuation tender offer proposals at Herald Investment Trust and Impax Environmental Markets, as well as repeated requisitions at Edinburgh Worldwide, the Association of Investment Companies (AIC) has called on the US hedge fund to respect the interests of other shareholders.

The AIC’s call comes as the Chair of Impax Environmental Markets has written an open letter to Boaz Weinstein outlining his concerns about the implications for other shareholders and the wider market of Saba’s “pursuit of its own goals at the expense of all others”.

Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “Saba is a minority shareholder and must respect other shareholder’s views. Boaz Weinstein talked about being on the side of ‘mom and pop investors’ but he is acting against the expressed wishes of other shareholders. The repeated rejection of tender offers at close to net asset value shows that this is not about closing discounts. If he wants to take control of an investment trust, he should make an offer for other shareholders to consider.

“Boards have to consider the views of all shareholders. Saba is putting boards in an impossible position because its interests clearly do not align with other shareholders. We have called on the government and the regulator to act quickly to protect shareholders’ interests and stop Saba exploiting the UK’s much admired listed company regime. Now Boaz Weinstein needs to do the decent thing and respect other shareholders’ views.”

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