European Opportunities trust rejects shareholder call for 50% tender offer
The offer is conditional on the passing of the trust’s continuation vote at its annual general meeting on 15 November, and will be paid out by 31 January 2024, at the latest.
The activist investor called on the trust earlier this week to increase the offer «to allow a significant portion of dissatisfied shareholders to exit».
Saba Capital calls for European Opportunities to increase size of tender offer
But in a stock exchange filing yesterday (7 November), EOT said the offer suggested by Saba «would not be in the best interest of the majority of shareholders» and reaffirmed its recommendation of a 25% tender offer.
The offer is conditional on the passing of the trust's continuation vote at its annual general meeting on 15 November, and will be paid out by 31 January 2024, at the latest.
Saba has urged shareholders to vote against continuation.
The tender offer would be in addition to the other 25% offer EOT set out for 2026 in case of continued underperformance.
The trust said the current proposal would allow it to «maintain a viable size of assets under management for ongoing shareholders, while accommodating the desire of some shareholder to reduce their holding at a price close to NAV».
Saba Capital eyes $500m for activist UK investment trust fund
EOT also rebuked Saba's claim that the 25% tender offer would widen its discount to NAV to «at least 15%», a claim the trust deemed to be «conjecture».
According to data from the Association of Investment Companies, EOT is currently trading at an 8.6% discount.
The trust said: «The board of EOT remains confident in the company's long term investment strategy. The portfolio manager embraces a high conviction approach, selecting companies which he believes are
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