- Herald Investment Trust
- 27 March 2026 10:39:56
Source: Sharecast
In an update, the board of the FTSE 250 firm said that if talks failed it would implement a backstop tender offer allowing eligible shareholders to tender up to 100% of their holdings at a price close to net asset value at the time of exit.
The company said most non-Saba shareholders had indicated they did not want the trust to become a Saba-controlled vehicle, with many expressing a preference to remain invested under Herald’s existing mandate or in a similar structure.
The board highlighted the trust’s long-term performance, noting it had delivered a 2,904% net asset value total return since inception, meaning many investors hold significant unrealised gains.
It added that a forced tender could create an “unwanted tax event” for shareholders, who would otherwise have to choose between crystallising gains or remaining invested in a vehicle likely to be managed and controlled by Saba.
The board said it was exploring options to allow investors to remain invested in a non-Saba-controlled structure in a tax-efficient manner, while also offering a meaningful cash exit.
However, it cautioned there was no certainty such a solution could be delivered, as it would depend on agreements with third parties and regulatory approvals.
Separately, Herald said it had been increasing the liquidity of its portfolio in preparation for a potential tender offer or alternative exit.
The investment manager had accelerated disposals, including of less liquid holdings, to mitigate the risk of value erosion from a compressed realisation process.
As a result, cash and government bonds represented 18.4% of net assets as of 28 February, rising to 26% as at 26 March, reflecting continued progress in repositioning the portfolio.
At 1012 GMT, shares in Herald Investment Trust were down 1.01% at 2,464.91p.
Reporting by Josh White for Sharecast.com.
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