Saba Capital Management has secured a significant liquidity-focused agreement for shareholders of Herald Investment Trust, marking what the activist investor describes as its sixth successful outcome from seven initial UK investment trust campaigns.
Herald Investment Trust, listed in London, has agreed to launch a tender offer for up to 66% of its issued share capital following engagement with Saba, its largest shareholder. The structure of the transaction will give investors the option to exit at a price close to net asset value or roll their exposure forward, with both cash and in-specie tender options expected to be made available.
The tender process will apply to eligible shareholders on a record date yet to be confirmed by the company.
Alongside the liquidity event, the trust has outlined plans to appoint Aberdeen Investments as its alternative investment fund manager. Long-standing investment manager Katie Potts is set to remain in place, providing continuity for ongoing portfolio management for shareholders electing to retain exposure.
As part of the agreement, Saba Capital has committed to support the relevant resolutions at an upcoming general meeting and to tender its full holding in the trust. The firm has also agreed to a standstill arrangement extending through to the company’s 2029 annual general meeting, subject to the terms of the agreement.
Saba founder and chief investment officer Boaz Weinstein described the outcome as part of a broader push to unlock value and liquidity across the UK investment trust sector, arguing that shareholders should have clearer exit options or improved governance structures when discounts persist.
Ina statement Boaz Weinstein, Founder and Chief Investment Officer of Saba, said: “Six successful outcomes from our seven original UK campaigns — that record speaks for itself. HRI shareholders will now have real choice: immediate liquidity close to NAV, or continued exposure to the same strategy they believe in under a stronger institutional platform.
“This is what shareholder engagement looks like when boards act in the interests of the people they serve, and it is what Saba will keep demanding across the UK investment trust sector.”
Legal adviser White & Case LLP and strategic adviser Longacre Square Partners are acting for Saba on the transaction.
