Herald Investment Trust PLC on Tuesday reiterated its opposition to a takeover proposal by Saba Capital Management LP, citing an independent recommendation.

The London-based investor in smaller technology companies said that an independent proxy advisor found that New York-based investment manager Saba ‘has not presented a compelling case for change, let alone a case for a majority position on the board and a strategy overhaul’.

The advisor’s view backs up a recommendation by Herald’s board that shareholders vote against takeover at a meeting scheduled for January 22.

This follows a slew of outcries against Saba from six other investment firms in which it holds interest and is looking to acquire outright. Saba on Friday raised its stake in Herald to circa 26% from 25%.

Herald claims to have ‘outperformed’ the Saba’s flagship fund. The UK company estimated that Saba Capital Master Fund Ltd delivered an annualised return on net asset value of around 4.8% between June 1 2009 and June 7 2024, compared to Herald’s 14.1% return in the same period.

These calculations were not verified by Saba, and are based on Saba’s return in US dollars and Herald’s return in sterling.

Saba’s proposal offers Herald investors a full cash exit at 99% of net asset value. This would not occur ‘for at least a year’, Saba said, to ensure portfolio value is ‘maximised’, though Herald said the open-ended timeline would risk value loss.

Herald added that Saba’s terms ‘lack any meaningful detail apart from the intention to appoint itself as manager’ and contradict Herald’s ‘successful long-term investment approach’.

Herald shares were down flat at 2,490.00 pence each on Tuesday afternoon in London.

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