European Opportunities passes continuation vote in face of shareholder opposition
The trust had faced fierce pushback from activist investor Saba Capital, who argued that shareholders should vote against its continuation.
In a stock exchange notice today (15 November), the trust said that all ordinary and special resolutions put to shareholders were approved.
However, between 15-25% of votes were cast against the trust's directors' remuneration policy and report, their re-elections and the continuation of the trust.
European Opportunities trust rejects shareholder call for 50% tender offer
The trust had faced fierce pushback from activist investor Saba Capital, which argued shareholders should vote against its continuation.
Saba also pushed last week for the trust to increase its tender offer from 25% to 50%, but the trust's board disagreed, stating it «would not be in the best interest of the majority of shareholders».
Today, the board said it had «instructed its advisers to commence preparations for the 25% tender offer announced on 6 November 2023 and will provide a further update as soon as practicable».
According to data from the Association of Investment Companies, EOT is currently trading at an 8.3% discount.
The trust has returned 11.2% over the last year, compared to a Europe AIC sector average of 7.1%, but has struggled over the long term, returning 15%, compared to the sector average of 49% over the last five years, according to data from the AIC.
European Opportunities proposes additional tender offer ahead of continuation vote
In accordance with the AIC corporate governance code, the trust will consult with shareholders to understand the reasons behind the large number of objections, adding that an update on these views and actions taken would be published within the next six months.
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