CQS Natural Resources is to propose a tender offer to shareholders worth 100% of the company after its board came to a “standstill agreement” with activist investor Saba Capital.
Subject to shareholder approval, it will allow all shareholders to sell their stock in the company at net asset value (NAV). For those opting to remain invested, the trust will then adopt an enhanced annual dividend of approximately 8% and reduce its investment management fee by 20 basis points.
Boaz Weinstein, founder and chief investment officer of Saba, said: “Today’s agreement highlights that meaningful, shareholder-friendly reform in the UK trust sector is not only possible – it’s happening. When boards engage constructively, investors win.
“This outcome gives shareholders a clear choice: full liquidity at NAV or the opportunity to stay invested in a trust with a higher dividend and a reduced management fee. It’s a true win-win.”
The trust is one of a number that Saba had in its crosshairs last year. While all of its initial suggestions were shot down by investors, Weinstein said today marked the “fifth successful outcome among Saba’s nine UK campaigns in 2025”.
This includes benefiting from wind downs at both Henderson Opportunities and Keystone Positive Change, as well as a tender off from European Smaller Companies.
“We’re proud to drive this transformation and remain committed to securing similar value-enhancing results for shareholders industry-wide,” he concluded.
It follows news this week that the firm has reportedly dug into its war chest and taken stakes in two new trusts: Utilico Emerging Markets and Worldwide Healthcare.