Former COO Axel Merk Demands Tender Offer at NAV Before Saba Restructures ASA

summarizeSummary

Former COO Axel Merk demands ASA's Saba-controlled board offer shareholders a tender offer at NAV before restructuring the fund, citing a widening discount and conflicts of interest.

check_boxKey Events · Corporate Governance and Compliance · ASA

• Merk Advisory Agreement Terminated

  On June 30, 2026, the Saba-controlled board terminated Merk Investments' advisory agreement. ASA is now managed by board members with no precious metals mining expertise, with a Saba partner heading the investment committee.

• Saba Proposes Liquidation and Repurposing

  Saba has proposed in regulatory filings to liquidate ASA's portfolio and repurpose the fund into a Saba-managed vehicle that would generate management and profit-sharing fees for Saba.

• Discount to NAV Widens to Over 15%

  Since Merk's management ended, ASA's discount to net asset value has exceeded 15% on most days as of July 15, 2026, up from an average of around 12.96% in the first half of 2026.

• Merk Demands Tender Offer Before Restructuring

  Merk calls on the board to conduct a tender offer at or near NAV before any restructuring, arguing shareholders should not be forced to bear the costs and risks of a transformation they did not choose.

auto_awesomeAnalysis · ASA · Unknown

Axel Merk, former COO and significant shareholder, escalates his campaign against Saba Capital's control of ASA. He reveals that Merk's advisory agreement was terminated on June 30, 2026, and the fund is now managed by a Saba partner with no precious metals expertise. Saba has proposed liquidating ASA's portfolio and converting it into a fee-generating vehicle for itself. Merk argues shareholders should be offered an exit at net asset value before any restructuring, especially as the discount to NAV has widened to over 15% since Merk's departure. This is a direct challenge to the board's legitimacy and a call for shareholder protection.