By MIKE SHEEN, This is Money, 4 February 2025:
Saba has suffered its fourth consecutive defeat at the hands of investment trust investors after Henderson Opportunities (HOT) shareholders rejected the hedge fund’s takeover proposals
HOT is one of seven investment trusts targeted by Saba’s plans to seize control of boards and management, with the hedge fund accusing them of failing to tackle recent poor performance and persistent discounts to net asset value.
Saba’s shareholding in HOT is 24.7 per cent and the trust said 65.4 per cent of total shareholder votes cast were against Saba’s proposals.
Just 0.72 per cent of the trust’s total voting rights unconnected to the hedge fund backed Saba..
HOT’s board will now turn its attention to a recently announced a reconstruction scheme, which would will see the trust voluntarily wound-up.
Investors will have the option of rolling over their investment at residual net asset value into the Janus Henderson UK Equity Income & Growth Fund or receive a cash exit..
James Carthew, head of investment companies QuotedData, warned Saba ‘still has sufficient votes to disrupt the company’s plans but it would be nonsensical of it to do so’.
He added: ‘This is the second time that Saba seems to have voted fewer shares than expected. I am starting to wonder if it had already started selling them before the meeting in expectation that it was going to lose.
‘Given the consistent pattern of rejecting Saba’s proposals, it would perhaps be a better idea if it simply withdrew the remaining requisitions.’
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