LONDON - The Board of Herald Investment Trust plc has advised its shareholders to vote against resolutions proposed by Saba Capital Management, L.P. in a forthcoming general meeting. The investment company, which specializes in technology sector investments, has called a meeting for January 22, 2025, in response to Saba Capital’s requisition.
The Board’s recommendation follows a series of communications from Saba Capital, which has been acquiring interests in the company. The Board believes that Saba’s actions are part of an attempt to gain control of Herald for its own economic benefit, rather than due to concerns about the company’s performance or share rating.
Herald Investment Trust has reported strong performance since its inception, with a net asset value (NAV) total return of 865.1% since April 2009, significantly outperforming the benchmarks. The Board is concerned that a change in management could lead to forced selling of parts of the portfolio, potentially resulting in a loss of value for shareholders.
The Board has also raised concerns about the independence of Saba’s proposed appointees, suggesting that they may not act in the best interests of Herald’s shareholders. The current Board emphasizes its independence and commitment to high standards of corporate governance, which it believes are crucial for protecting shareholder interests.
Herald’s investment outlook remains positive, with the technology sector seen as dynamic and ripe with opportunities, particularly in artificial intelligence, net zero initiatives, and cybersecurity. The Board argues that Saba’s short-term focused strategy would be at odds with Herald’s approach of nurturing small investments to enhance shareholder value over the long term.
Chairman Andrew Joy expressed confidence in Herald’s unique investment strategy and its track record of delivering substantial returns. He urged shareholders to vote against Saba Capital’s proposals, which the Board unanimously considers not in the best interest of all shareholders.
The Board’s recommendations and reasons for rejecting the proposed resolutions are detailed in a circular posted to shareholders and available on the company’s website. Shareholders are encouraged to vote against the resolutions at the upcoming general meeting. The information for this article is based on a press release statement.
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