The chairman of an investment trust targeted by a US hedge fund said that ‘there are no winners’ as shareholders headed for the exit.
Impax Environmental Markets (IEM) revealed that nearly four-fifths of shares were tendered for sale after investors were offered the chance to cash out of the trust following the attack by Saba Capital Management.
It leaves the remaining trust facing an uncertain future.
Saba, led by New York activist financier Boaz Weinstein, has built up a 22 per cent stake.
That prompted fears that Saba – which has also targeted a number of other UK-listed investment trusts – would try to take control of the company even after the majority of investors backed IEM in a vote last year.
In a drastic defence, IEM offered the chance for shareholders to cash out their stake in the firm’s assets instead.
Takeover bid: Saba Capital, led by New York activist financier Boaz Weinstein (pictured), has built up a 22% stake in Impax Environmental Markets
Yesterday, it revealed that investors representing just under 78 per cent of shares had taken up the offer – a figure that apparently includes ‘the majority, if not all’ of Saba’s position.
That will crystallise immediate profits for the shareholders but is likely to result in bitter recriminations over IEM’s demise – and the failure of regulators to protect it.
Chairman Glen Suarez said: ‘There are no winners here. This was an extraordinarily difficult situation to navigate, trying to balance the varied desires of all of our different shareholders.
‘The overwhelming majority of shareholders voted just a year ago in favour of IEM’s continuation, but Saba made it clear in subsequent interactions with the chair that they did not agree.
‘As a result, the board acted proactively to offer an exit to all shareholders who wished to take it.
‘The board will now carefully consider all options regarding the company’s future, and will provide a further update with the notice of AGM [annual general meeting], to be announced shortly.’
The announcement came as Edinburgh Worldwide Investment Trust (EWIT), another Saba target, issued a rallying call to investors to fight off the hedge fund at its annual general meeting next week.
Saba is seeking to use the trust’s AGM on April 30 to turf out the EWIT board in its entirety and replace them with Weinstein’s own hand-picked nominees.
EWIT chairman Jonathan Simpson-Dent said: ‘We urge every shareholder to make their voice heard.’
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