Impax Environmental Markets (IEM) has passed the first hurdle in its effort to escape the clutches of Saba Capital, though, like Herald (HRI), the other investment trust being stalked by the activist hedge fund, its future remains uncertain.

Yesterday the unique £831m London-listed investment company got almost unanimous approval from the 38.9% of its shares that voted for a 100% continuation tender offer designed to let Saba offload its 21% stake, and anybody else who wants to sell.

However, the board reiterated it would not proceed with the tender offer if Saba did not participate. When IEM published the circular detailing the proposal, Saba indicated it may not support the buyback and the board said it had no reason to believe the US investor had changed its position.

Saba has until 1pm on Thursday to submit its tender forms so IEM will make a further announcement on Friday.

When he announced the board’s plans last month, chair Glen Suarez said if the continuation tender failed it would, like Herald, launch a second tender offer to let investors escape a fund likely to fall into the hands of Saba. This would require a second shareholder vote. We warned that this could leave Saba in control of an illiquid rump that loses the tax advantages of its investment trust status.

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