Saba Capital has withdrawn its requisition notice of CQS Natural Resources Growth & Income following “very constructive discussions” between the two parties.
As a result, the US-based hedge fund has agreed to allow the CQS trust’s board to complete the strategic review that was announced on 7 January.
We are pleased to have reached this constructive way forward with the team at Saba and to focus on achieving an outcome in the best interests of all shareholders,” said chair Christopher Casey.
Saba requisitioned three other boards alongside CQS Natural Resources in early February to force votes on transitioning each trust into an open-ended vehicle, though the notices at Middlefield Canadian Income and European Smaller Companies trust have been postponed, while the requisition of Schroder UK Mid Cap has been deemed invalid.
See also: Trust Talk with Richard Stone, CEO, AIC
Strategic review
As part of the review announced by the CQS Natural Resources board in January, directors and their advisers are currently considering a range of strategic options for the investment trust.
The potential options include providing liquidity to shareholders through buybacks or tenders, introducing an increased dividend and pursuing further discount management mechanisms.
The board could also opt to offer shareholders a full cash exit at NAV, or pursue a combination with another investment trust if a suitable partner can be identified.
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