Saba Capital Management has demanded the resignation of the board of Impax Environmental Markets, marking a further escalation in its broader activist campaign across the investment trust sector, according to a report by ThisIsMoney.
Led by activist investor Boaz Weinstein, Saba – the trust’s largest shareholder – is seeking to replace the existing board with a slate of independent directors. The proposal follows similar intervention strategies previously deployed at other investment trusts.
In a letter to shareholders, Saba expressed strong dissatisfaction with the trust’s long-term performance, highlighting significant underperformance versus its benchmark over a five-year period. The firm argued that this gap justified a complete board refresh.
The activist campaign comes against the backdrop of a major shift in shareholder composition. Recent data shows that nearly 78% of shares were tendered in a cash exit offer, effectively allowing investors to redeem their stakes. Saba suggested that the scale of redemptions reflects a lack of confidence in the trust’s continuation in its current structure.
Following the tender process, Saba is expected to hold close to 30% of the remaining shares, positioning it as a dominant shareholder in the reorganised structure.
The situation has sparked uncertainty around governance and control of the trust, with market observers noting that the unusually high level of redemptions effectively reshapes the shareholder base and raises questions about the trust’s future direction.
The board of Impax Environmental Markets has acknowledged the challenging circumstances, noting that it sought to balance differing shareholder interests. It added that the exit mechanism was introduced in response to investor pressure and previous votes supporting continuation of the trust.
Saba has also been active across other UK-listed investment trusts, including efforts to unseat the board of Edinburgh Worldwide Investment Trust, where it has proposed replacing directors with its own nominees.
That campaign is set to come to a head at upcoming annual general meetings, where Saba is seeking to secure control through shareholder votes.
