Impax Trust Chairman Criticizes FCA Over Saba Capital Takeover
Glen Suarez, chairman of Impax Environmental Markets, expressed frustration with the UK's regulatory framework after Saba Capital, a minority shareholder, gained control of the £183 million trust.
The chairman of the Impax Environmental Trust has criticized the UK's Financial Conduct Authority (FCA) for permitting Saba Capital to take control of the investment trust. Glen Suarez, chairman of Impax Environmental Markets, stated that the "peculiarities of the UK regulatory regime and company law" allowed Saba Capital, the trust's largest investor with approximately 21% of shares, to effectively seize control.
Saba Capital is run by fund manager Boaz Weinstein. The shift in control was solidified at the trust's annual meeting, where five directors were replaced by Saba nominees. Suarez characterized the situation as a single minority shareholder gaining control due to regulatory and legal specificities.
Weinstein, however, countered Suarez's assessment, describing the outcome as a "resounding rejection of the status quo" and citing "years of disastrous performance" by the previous directors. This event follows a similar takeover by Saba Capital of the Edinburgh Worldwide Investment Trust in April.
The industry is reportedly advocating for changes to shareholder voting rules to prevent such hostile takeovers. Impax Environmental Markets is a £183 million investment trust.