Glass Lewis adds opposition to Saba’s move on EWIT – Daily Business

Another shareholder group is advising investors in Edinburgh Worldwide Investment Trust to reject a New York hedge fund’s attempts to oust the board.

Independent voting adviser Glass Lewis recommends shareholders vote against all of Saba Capital Management’s proposals at the general meeting on 20 January. This follows a similar recommendation from ISS. 

EWIT has also noted public support from Legal & General for the board’s stance. A live Q&A session with the chair is scheduled for today to address shareholder questions.

Saba wants the board to be replaced by its own nominees.

Jonathan Simpson-Dent, chair of Edinburgh Worldwide, said: “We are pleased to note the conclusions of Glass Lewis and ISS who both recommend that shareholders vote against all of Saba’s resolutions.

“We are also pleased to see Legal & General plc come out to publicly support the board and its intention to vote against all of Saba’s proposals.”

Separately, Herald Investment Trust is proposing a tender offer allowing shareholders to sell up to 100% of their shares for cash at close to net asset value, aiming to restructure the shareholder base and focus on its investment strategy.

This follows previous unsuccessful attempts by Saba Capital Management to gain control of the company, with Herald’s NAV total return reaching 2,956% since inception and 31% over the last three years, significantly outperforming Saba Capital Master Fund’s 151% return since April 2009.

The tender offer is conditional on Saba tendering substantially all of its approximately 30.7% holding, with a contingency backstop tender offer planned if the initial offer is blocked, which would require a simple majority vote for approval.