LONDON – Herald Investment Trust PLC has publicly responded to a recent proposal from Saba Capital, emphasizing its historical financial performance and questioning the potential impact of Saba’s plan on shareholder value. The response follows Saba’s statement dated January 9, 2025, and comes ahead of a general meeting where shareholders will vote on the matter.
Herald’s Board highlighted its track record, citing a net asset value (NAV) total return of 2,611.6% for shareholders from its inception on February 21, 1994, to December 31, 2024. Chairman Andrew Joy pointed out that since Saba began investing in 2009, Herald has outperformed Saba with a NAV total return of over 865%.
The Board expressed concerns over Saba’s proposal, which does not guarantee an exit at 99% of the current NAV. Instead, it offers an exit “after at least a year,” during which the Board fears significant value could be lost from the portfolio in anticipation of Saba’s known selling interest.
Herald’s Board has been actively engaging with shareholders and, contrary to Saba’s implications, has not found shareholder support for Saba to take over management. The Board emphasized the importance of an independent review of such matters, acting in the best interests of all shareholders.
The Board recommended that shareholders vote against the resolutions proposed by Saba at the upcoming general meeting. Further announcements will be made as necessary.
The information in this article is based on a press release statement from Herald Investment Trust PLC.
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