CQS Natural Resources Growth & Income Regulatory News (CYN)

CQS Natural Resources Growth and Income - Flash note from QuotedData

13th January 2025

Protect your investment - get out and vote

On 18 December 2024, CQS Natural Resources Growth and Income (CYN) received a requisition notice from a nominee of Saba Capital Management LP (Saba) requiring it to convene a general meeting for shareholders to consider resolutions proposed by Saba to remove the existing completely-independent board of non-executive directors and replace it with two directors of Saba's choosing.

On 7 January 2025, CYN's board issued a comprehensive rebuttal of Saba's proposals when it published a circular (a formal document sent to shareholders) in relation to the requisitioned meeting - it describes Saba's proposals as "self-interested and misleading." The board's position is very clear - it is unanimous in recommending shareholders vote against Saba's resolutions.

From the outset, we have cautioned shareholders against giving full control of the trust to one dominant shareholder that would be free to act entirely in its own interests. Saba has made clear its intention to get itself appointed as manager and merge the seven targets into one large vehicle with a mandate to attack other investment companies. The FCA's (Financial Conduct Authority) Listing Rules make it clear that the board of directors of an investment company must be able to act independently of any investment manager. We are not comfortable that Saba's proposals meet this requirement.

With so much at stake, we thought we should take a deeper look at Saba's proposals and CYN's board's response to these, to see what the merits are. Our conclusion is that Saba's plans for CYN are so poor for all shareholders other than itself that its proposals deserve to be voted down comprehensively. We urge all shareholders: protect your investment and get out and vote.

Full Research:

https://quoteddata.com/research/cqs-natural-resources-growth-and-income-protect-your-investment-get-out-and-vote-qd/

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