European Opportunities Trust PLC Response to Saba Capital Management (6847S)
07 Novembre 2023 - 5:03PM
UK Regulatory
TIDMEOT
RNS Number : 6847S
European Opportunities Trust PLC
07 November 2023
EUROPEAN OPPORTUNITIES TRUST PLC
("EOT" or the "Company")
Response to Saba Capital Management
The Board of EOT notes Saba Capital Management's ("Saba")
publication of a letter regarding its opposition to the proposed
tender offer the Company announced on 6 November.
The Board believes that the 50% tender offer suggested by Saba
would not be in the best interests of the majority of shareholders
at this time and affirms its position in recommending that a 25%
tender offer be implemented following the Company's Annual General
Meeting on 15 November. The proposed tender offer would allow the
Company to maintain a viable size of assets under management for
ongoing shareholders, whilst accommodating the desire of some
shareholders to reduce their holding at a price close to NAV. The
Board's priority is to consider and act in the best interests of
all its shareholders.
The Board believes Saba's contention - that the completion of
the 25% tender offer would lead to a widening of the discount to
NAV "to at least 15% - a level common in UK investment trusts that
do not have a continuation vote" - to be conjecture. Furthermore,
the Board reiterates that, in accordance with the Company's
articles of association, the Company will put a further
Continuation Vote to the 2026 Annual General Meeting and again to
the Annual General Meeting every three years thereafter.
The Board of EOT remains confident in the Company's long term
investment strategy. The portfolio manager embraces a high
conviction approach, selecting companies which he believes are
differentiated and have the balance sheet strength, cash flows and
exposure to enable them to flourish in a range of economic
scenarios and provide superior returns to investors over the medium
and long term. The Board believes that this approach offers
shareholders access to attractive medium- and long-term growth
opportunities though a differentiated investment strategy with a
strong long-term track record.
The Board continues to be proactive in implementing measures to
create value for shareholders, improve liquidity and reduce the
discount to NAV, including:
-- a substantial ongoing share buyback programme with the stated
purpose of maintaining the discount to NAV in single digits in
normal market conditions;
-- recent material reductions in the fees payable to the
Investment Manager (and the removal of the former performance fee
arrangement in 2019);
-- the introduction of proposals for the forthcoming tender
offer for 25% of shares in issue; and
-- the recent introduction of a conditional tender offer for a
further 25% of shares in issue by references to the Company's
performance over the three financial years ending 31 May 2026.
As previously communicated, the Board of EOT believes that the
continuation of the Company is in the interests of shareholders as
a whole and, following active engagement with and careful
consideration of feedback from a range of shareholders, understands
that the majority of shareholders wishes to see the Company
continue. The Board notes that both Institutional Shareholder
Services (ISS) and Glass Lewis have recommended that shareholders
vote in favour of the Continuation Vote.
For further information, please contact:
Company Secretaries enquiries@devonem.com
Richard Pavry / Charles Bilger +44 (0)20 3985 0445
Singer Capital Markets - Corporate broker
Robert Peel / Angus Campbell (Investment
Banking)
Alan Geeves / James Waterlow / Sam Greatrex
(Sales) +44 (0)20 7496 3000
Buchanan Communications - PR Adviser eot@buchanancomms.co.uk
Henry Wilson +44 (0)7788 528143
Helen Tarbet +44 (0)7872 604453
George Beale +44 (0)7450 295099
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END
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November 07, 2023 11:03 ET (16:03 GMT)
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