Impax offers 'destabilising' Saba cash exit via tender offer

(Sharecast News) - Impax Environmental Markets on Friday became the latest trust to offer activist investor Saba a cash exit via a continuation tender offer for up to 100% of its stake at close to net asset value while giving investors who want to stay the ability to do so. The offer is conditional on Saba - which holds a 20.7% stake worth around £158m - offloading most or all of its shares. If it refuses Impax will put forward a second "exit" offer as it believes Saba, "an activist with a short-term investment horizon" may be aiming to control the company's strategic direction and assets.

Impax chair Glen Suarez said Saba had indicated it would oppose the resolution, which needs the support of 75% of shareholders.

"After exhausting every reasonable alternative to protect our shareholders, the board has been left with no choice but to propose the continuation tender offer ... in response to Saba's relentless pursuit of short-term objectives at the expense of IEM and the wider UK investment trust sector," said IEM chair Glen Suarez, who called the activist's presence on the share register "destabilising".

"The board cannot stand by while Saba's actions create an environment of uncertainty and risk for all our shareholders."

He added that if Saba formally rebuffed the offer "its motive for control will be revealed".

Reporting by Frank Prenesti for Sharecast.com