Saba Capital’s requisition notice of the Schroder UK Mid Cap board has been deemed invalid, as it did not hold sufficient shares on the date of the notice.
In a London Stock Exchange announcement this morning (27 February), the Schroder UK Mid Cap board said that after reviewing the notice, Vidacos Nominees Limited — the nominee of Citibank, who are acting as prime broker on behalf of Saba — did not hold the required shares to comply with the Companies Act and force a general meeting.
However, the board noted that Saba is now the registered holder of sufficient shares, and a new requisition would comply with the act.
The US hedge fund aims to offer shareholders a vote on moving the trust to an open-ended vehicle.
Saba requisitioned three other boards in early February, though the notices at Middlefield Canadian Income and European Smaller Companies trust have been postponed.