Saba Capital Management LP on Thursday offered shareholders of Herald Investment Trust PLC a full cash exit at 99% of net asset value if Saba’s attempts to reconfigure the board are successful.
‘If shareholders support Saba’s resolutions to reconstitute the HRI board, Saba would encourage the new board to offer all shareholders a 100% cash exit at 99% of the Trust’s NAV,’ a statement from the hedge fund said.
Shares in Herald Investment Trust were 0.4% lower at 2,480.00 pence each in London on Thursday morning.
Saba said the cash exit would be overseen by a fully independent board and would not expect it to occur for at least a year thereafter, ensuring portfolio value is ‘maximized’.
Saba, founded by former Deutsche Bank banker Boaz Weinstein, said the new commitments were in response to feedback from shareholders, who Saba claimed have ‘suffered’ a 14.7% three-year average discount to NAV.
The plans ‘provide certainty regarding the plan to deliver long-overdue liquidity to all shareholders, alongside the opportunity for greater long-term returns under a new investment strategy and manager,’ Saba added.
Saba’s pledge is the latest twist in a push to oust management from seven UK-listed investment trusts.
Saba, which has offices in London and New York, has requisitioned General Meetings of the seven Trusts and nominated representatives to replace existing directors.
The move has sparked a tit-for-tat war of words between Saba and the seven.
The other six trusts are Baillie Gifford US Growth Trust PLC, CQS Natural Resources Growth & Income PLC, Edinburgh Worldwide Investment Trust PLC, European Smaller Companies Trust PLC, Henderson Opportunities Trust PLC, and Keystone Positive Change Investment Trust PLC.
Herald Investment Trust’s General Meeting is scheduled for January 22.
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