Impax Asset Management Share Price (IEM)

Stuartrm. Thanks for your posts. I've held IEM off and on since early 2009 when AIM became the hoped for "rescue"zone from another Wall Street farago. Bought because of the niche markets and the fact that staff bonuses were in shares, not directly from company funds. My faith in the long term of IEM saw me extend ownership to family holdings (1 x ISA, 1 X JISA & 2 SIPPS) over the last 10 years. The fat jowled Boaz cares not, of course, for such sentiments from us little people and I've no wish to risk anything he has in mind. I count myself fortunate that Jupiter's Ecology UT also popped into view at a similar time and that's also done OK. I mention it if anyone wants a look at a similarly mandated fund when IEM very sadly wraps up.

Although my comment of 20 April was effectively answered by the RNS of 21 April, I promised to publish any reply I received. Here, therefore, is the response I received yesterday (minus a restatement of the Saba letter, which is in the said RNS):

“ Your query has been passed to us by Impax, we are financial adviser to IEM.

While you are correct about IEM’s announcement of 07:00 on 20 April, Saba made its own announcement the following morning stating that it anticipated holding 29.9% of the Company’s shares after the tender offer concludes. The Company provided an update in light of this, as set out in full just below.

Thus the likelihood is that at the conclusion of the tender offer Saba will have a large voting position and significant influence over the Company's strategy, objectives, and mandate. I think the outcome is therefore aligned to your interpretation of the risks the Company faced when it proposed the exit tender offer and why you chose to tender your shares. For completeness, however, it is not possible to withdraw shares once tendered.”

RNS today:

“Saba sends Letter to Impax Environmental Markets PLC's Board of Directors Regarding its Intention to Requisition a General Meeting to Replace the Board and Deliver Long-Term Value to Shareholders

Saba Capital Management, L.P. (together with certain of its affiliates, "Saba"), the largest shareholder of Impax Environmental Markets PLC (IEM:LSE) (the "Company"), today released a letter sent yesterday to the Company's Board of Directors (the "Board") regarding its intention to requisition a general meeting of the Company to provide shareholders the opportunity to vote to remove the entire incumbent Board and, in its place, appoint a new board composed solely of qualified, independent directors who are committed to delivering long-term value for all shareholders.”

The RNS this morning states that SABA are effectively selling up and moving on. This raises the possibility that the trust could continue without them if the rest of us reverse our tender requests, more or less taking IEM back (albeit it would be smaller) to where it was before SABA become involved. I have e-mailed Impax to see if they are exploring this option. I would also be interested in any other views. If I get a reply, I will let you know what Impax says.

What is in it for Saba? Is it to increase their size and get more management fees?

They say the company has underperformed its benchmark. It has, but the benchmark covers all kinds of companies, and the environmentally responsible companies that IEM specialises in have been out of favour for years. That suggests Saba want to buy shares in such companies while they are cheap, and ride the recovery when it comes. But if they have control, they could invest in the types of businesses other IEM investors are actively avoiding.

Anyone able to shed any light?

PS: I see that the share price is 3.5 times what it was when the last message was posted on this board in 2010. That's not too bad!