Saba Capital Settles with Virtus Fund, Withdraws Nominations, Agrees to 25% Tender Offer
summarizeSummary
Virtus Dividend, Interest & Premium Strategy Fund (NFJ) has reached a comprehensive agreement with activist investor Saba Capital. As part of this settlement, Saba Capital has withdrawn its previously submitted nominations for the fund's 2026 annual meeting of shareholders. The agreement also formalizes a cash self-tender offer for up to 25% of NFJ's outstanding shares, allowing shareholders to tender their shares at 99% of the fund's net asset value per share. This resolution with a prominent activist investor removes uncertainty surrounding potential governance changes and provides a significant capital return opportunity for shareholders, which is a material positive development for the stock.
At the time of this announcement, NFJ was trading at $13.85 on NYSE in the Finance sector, with a market capitalization of approximately $1.3B. The 52-week trading range was $10.83 to $13.92. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Reuters.