An investment trust under pressure from activist investor Saba Capital said the “clear majority” of shareholders have chosen to remain invested with it.
Schroder UK Mid Cap fund announced a tender offer after reaching agreement with Saba, the largest shareholder in the fund, that it would tender its shares.
In the past couple of months, Saba has ousted the boards of Edinburgh Worldwide Investment Trust and Impax Environmental Markets.
A total of 34.26 per cent of shares were included in the offer which closed on June 22.
Shareholders approved the implementation of the tender offer at a general meeting of the company on Wednesday (June 24).
Harry Morley, chair of Schroder UK Mid Cap Fund plc, said: “We are pleased that a clear majority of our shareholders have chosen to remain invested in the company, and we now have a stable base from which to grow going forward.”
Fund manager Jean Roche, also thanked investors for choosing to remain invested and said the fund is focused on delivering long-term value.
John Spedding, head of investment trusts at Schroders, added: “We welcome today’s announcement, which follows constructive discussions with shareholders.
“Delivering the best possible outcome for our shareholders remains our primary focus.
“We believe this positions the trust strongly for future growth while ensuring shareholders’ interests are at the forefront.”
tara.o’connor@ft.com
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