European Opportunities Trust PLC (LSE:JEO) said it will consult with shareholders after surviving intense criticism from major hedge fund investors Saba Capital and winning a continuation vote today.
The £800 million investment trust, which in the run-up to the shareholder vote had proposed a tender offer for up to 25% at a 2% discount to net asset value (NAV), faced pressure from Saba Capital, which said that the "modest" proposal "raises significant concerns".
Due to the size of the votes against continuation and reappointment of directors, with opposition from between 15% and 25% of the issued shares, the board promised to consult shareholders "in order to understand the reasons behind the result".
An update on the views received from shareholders and any actions taken will be published within six months.
EOT, which also appointed former chancellor of the exchequer Norman Lamont as senior independent director as Virginia Holmes retired, said it has already instructed its advisers to begin preparations for the tender offer.
Alexander Darwall, whose Devon Equity Management firm manages the £868 million portfolio, told investors at the meeting that he does not plan to sell the portfolio's worst performing share, Genus, and committed to turn around the trust's performance after underperforming its benchmark index by 23% over five years, according to Citywire.