Saba proposes full liquidity option for Baillie Gifford US Growth

Saba Capital Management LP, the largest shareholder in Baillie Gifford US Growth Trust PLC, on Monday issued a resolution notice proposing to elect three new directors to the company's board.

The New York-based activist investor proposed Jason Chen, Thomas McGlade and James Waterlow as directors. Saba recommended that, if elected, the nominees offer US shareholders an option for a full cash exit at or near net asset value.

Saba, which holds a 29% stake in the trust, plans to bring the proposal to Baillie Gifford US Growth Trust's annual general meeting in September.

Saba said: "Over the past five years, USA has underperformed the S&P 500 Index on both price (-88.4%) and NAV return (-79.1%) basis. During that time, US shareholders have suffered under a board that has repeatedly put Baillie Gifford’s interests first."

Earlier on Monday, the investment trust, which is managed by Baillie Gifford & Co Ltd and invests in US growth stocks for a minimum of five years, asked shareholders to take no action ahead of a further announcement from the board.

In December last year, Saba had blocked a proposed merger between the trust and Edinburgh Worldwide Investment Trust PLC, also managed by Baillie Gifford.

Saba took control of Edinburgh Worldwide in April, ousting its board after a stand-off that lasted more than a year. In June, Saba successfully appointed its nominees to the board of another FTSE250 listing, Impax Environmental Markets PLC.

Baillie Gifford US Growth Trust shares traded 0.4% higher at 329.29 pence on Monday afternoon in London.

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