CQS Natural Resources Growth and Income has survived its 100% tender offer. 29,334,059 shares (45.72% of the shares in issue) were tendered. A slice of the trust’s portfolio equating to 45.72% of its assets has been transferred into a ‘tender pool’. These assets will be liquidated and the cash handed back to the tendering shareholders. We will not know what the final tender price is until the realisation exercise has been completed.
The aim is to realise the assets in the tender pool by 30 September 2025, but there is no guarantee that it can be done by then. The last 5% of the assets in the pool may be sold in the open market for whatever price is available if that helps get the job done. However the statement says “If, in the directors’ discretion (as advised by the manager) this would result in a manifestly unfair or incorrect outcome or no offers are available, such assets will be transferred to the continuing pool at a price to be determined by the directors, upon advice from the manager, taking into account the fact that the assets cannot otherwise be realised in a timely and value-effective manner.”
There may be dividends to come from the tender pool.
For the ongoing trust, there are lower management fees (a flat 1% of NAV), an enhanced (8% of NAV per annum – 2% per quarter) dividend, and a continuation vote at the 2028 AGM and then every two years thereafter.
Saba Capital has reached a standstill agreement with the company, promising not to requisition a meeting or vote to remove the directors ahead of the AGM in 2028. As reported separately, that standstill agreement also applies to stablemates Golden Prospect Precious Metals and Geiger Counter.
[QD comment, James Carthew: I am delighted that CQS Natural Resources gets more time to demonstrate its potential and a period of respite from attacks by Saba. I have to admit that I am not a fan of the 8% dividend, which feels too high to me. However, it might attract sufficient attention to allow the trust to trade at a premium and issue more shares.]
CYN : CQS Natural Resources survives tender offer
