Key Takeaways
- • Herald Investment Trust PLC (HRI:LSE) has announced a tender offer for up to 66 percent of its issued share capital following negotiations between activist shareholder Saba Capital and the Board, according to a Saba press release distributed via Business Wire.
- • The tender offer includes both a cash option and an in specie option, with eligibility tied to the register of members at a record date yet to be set by the Company.
- • The Board intends to appoint Aberdeen Investments as alternative investment fund manager, with Katie Potts remaining as investment manager.
- • Saba has agreed to vote in favour of the requisite resolutions, tender all of its shares, and observe standstill covenants through the 2029 AGM or earlier under the agreement.
- • The outcome is Saba's sixth successful result from seven original UK investment trust campaigns launched in December 2024, per the firm's own characterization.
Summary
Saba Capital Management, L.P., the largest shareholder of Herald Investment Trust PLC, announced that its engagement with the Board has produced a tender offer for up to 66 percent of the Company's issued share capital. According to Saba, the tender will be open to eligible shareholders on the register of members as at a record date to be determined by the Company, and will include both a cash tender option and an in specie tender option.
Alongside the tender, the Board has announced its intention to appoint Aberdeen Investments as the Company's alternative investment fund manager. Katie Potts will remain as investment manager, which the announcement describes as providing continuity for investors who choose to remain invested in the trust.
Under the agreement, Saba has committed to vote in favour of the requisite resolutions at the Company's general meeting and to tender all shares it owns. Saba has also agreed to observe certain standstill covenants through the conclusion of the Company's annual general meeting to be held in 2029, or earlier pursuant to the agreement's terms.
Boaz Weinstein, Founder and Chief Investment Officer of Saba, said the record demonstrates the value of shareholder engagement, noting that HRI shareholders will have a choice between immediate liquidity close to NAV and continued exposure to the same strategy under a stronger institutional platform. Saba stated that HRI is the sixth of its seven original UK investment trust campaigns, launched in December 2024, to deliver a material liquidity or governance outcome. The firm claims these campaigns have returned hundreds of millions of pounds to retail investors and that record buybacks across Saba-owned trusts have lifted NAVs for all shareholders. These figures are Saba's own assertions and have not been independently verified in the announcement.
White & Case LLP acted as legal adviser and Longacre Square Partners as strategic adviser to Saba. Saba is a New York and London-based alternative asset manager founded in 2009 by Boaz Weinstein, known for credit relative value strategies and capital structure arbitrage.
Alongside the tender, the Board has announced its intention to appoint Aberdeen Investments as the Company's alternative investment fund manager. Katie Potts will remain as investment manager, which the announcement describes as providing continuity for investors who choose to remain invested in the trust.
Under the agreement, Saba has committed to vote in favour of the requisite resolutions at the Company's general meeting and to tender all shares it owns. Saba has also agreed to observe certain standstill covenants through the conclusion of the Company's annual general meeting to be held in 2029, or earlier pursuant to the agreement's terms.
Boaz Weinstein, Founder and Chief Investment Officer of Saba, said the record demonstrates the value of shareholder engagement, noting that HRI shareholders will have a choice between immediate liquidity close to NAV and continued exposure to the same strategy under a stronger institutional platform. Saba stated that HRI is the sixth of its seven original UK investment trust campaigns, launched in December 2024, to deliver a material liquidity or governance outcome. The firm claims these campaigns have returned hundreds of millions of pounds to retail investors and that record buybacks across Saba-owned trusts have lifted NAVs for all shareholders. These figures are Saba's own assertions and have not been independently verified in the announcement.
White & Case LLP acted as legal adviser and Longacre Square Partners as strategic adviser to Saba. Saba is a New York and London-based alternative asset manager founded in 2009 by Boaz Weinstein, known for credit relative value strategies and capital structure arbitrage.
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