“Unless the FCA steps up this could happen again and again”
AIC responds to Edinburgh Worldwide’s proposed tender offer.
The Association of Investment Companies (AIC) has responded to Edinburgh Worldwide Investment Trust’s announcement that the board is proposing a 100% tender offer while preserving the potential upside from SpaceX.
Richard Stone, Chief Executive of the Association of Investment Companies (AIC), said: “The FCA needs to take immediate action on the Listing Rules to protect the long-term interests of shareholders. Shareholders have repeatedly rejected Saba’s attempts to take control of Edinburgh Worldwide. The current rules are not fit for purpose because they allow a minority shareholder to repeatedly attack an investment trust. Unless the FCA steps up this could happen again and again and we could see more UK-listed companies disappear.
“Saba’s attack on Edinburgh Worldwide could result in the disappearance of an investment trust which offers shareholders exposure to dynamic private companies like SpaceX. Investment trusts are the only way that private investors can get exposure to these innovative and hard-to-reach companies. An activist investor should not be allowed to ride roughshod over shareholders and destroy much valued investment trusts.”
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Notes to editors
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