European Opportunities proposes additional tender offer ahead of continuation vote
If approved, the tender offer is expected to take place by 31 January 2024, the latest.
In a regulatory filing today (6 November), the trust said the plan will be subject to shareholder approval and, if successful, will be priced at the prevailing net asset value at the time of repurchase less 2%. If approved, the tender offer is expected to take place by 31 January 2024 at the latest.
EOT explained the offer will be conditional on shareholders passing the continuation vote at the annual general meeting on 15 November, which the trust's directors consider being «in the best interest of shareholders», as they expect the vast majority of investors to vote in favour.
Activist investor Saba Capital opposes European Opportunities conditional tender offer
The trust said the arrangements for the conditional tender offer in 2026 announced last month will not be affected by the current plans.
Activist investor Saba Capital has recently come out in opposition of the 2026 conditional tender offer, arguing it would vote against continuation unless EOT provides a full exit option at net asset value, stating there was «no reason» to keep investors «trapped» for three years.
In the regulatory notice, the trust said: «The board has an active discount management policy, the primary purpose of which is to reduce discount volatility. It seeks to maintain the discount in single digits in normal market conditions.
»Buying shares at a discount also results in an enhancement to the NAV per share. The introduction of the tender offer will not change the board's current approach to discount management."
European Opportunities proposes performance-related tender offer
According to the Association of Investment Companies, European Opportunities
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