Saba Capital Demands Board Members Resign Following ClearBridge Energy Midstream Opportunity Fund’s Annual Meeting
April 18 2023 - 9:15AM
Business Wire
Common Shareholders Voted 74% for Saba vs. 26%
for EMO
All Shareholders (including the super-voting
pfd) Voted 64% for Saba vs. 36% for EMO
Exposes ClearBridge’s Flawed Corporate
Governance Structure and the Board’s Total Disregard for the Voting
Rights of Shareholders
Saba Capital Management, L.P. (“Saba” or “we”), the largest
common shareholder of the ClearBridge Energy Midstream Opportunity
Fund Inc. (NYSE: EMO) (“EMO” or “ClearBridge” or the “Fund”), today
commented on the preliminary voting results of the Fund’s 2023
Annual Meeting of Shareholders (“Annual Meeting”).
As a result of the extensive measures ClearBridge has taken to
disenfranchise common shareholders – including a dilutive private
placement, adoption of a control share acquisition provision and an
impossible to achieve voting standard – Saba Capital’s director
nominee Paul Kazarian will not be seated on the Fund’s Board of
Directors (“the Board”) despite having received 64% of the vote
from all shareholders.
Boaz Weinstein, Founder and Chief Investment Officer at Saba,
commented:
“The results of this election put a spotlight on the total
disregard ClearBridge – and its parent company, Franklin Resources
– have for the rights of shareholders. EMO shareholders
resoundingly voted for change in this election. However, the
Board’s entrenchment mechanisms and ClearBridge’s flawed corporate
governance structure ensured that this would be a sham election and
that Saba’s nominee would never be seated.
While the Board claims to be ‘committed to acting in the best
interests of all stockholders,’ its refusal to accept that
shareholders rejected their incumbent shows their determination to
do the opposite. This further underscores our belief that this
Board has abandoned its fiduciary obligation to shareholders and
will do everything in its power to avoid being held accountable for
the gross mismanagement and historic underperformance of the Fund.
Saba is committed to pursuing all available paths to continue to
defend the rights of closed-end fund shareholders at EMO going
forward, and we call for the full board to resign effective
immediately.”
About Saba Capital
Saba Capital Management, L.P. is a global alternative asset
management firm that seeks to deliver superior risk-adjusted
returns for a diverse group of clients. Founded in 2009 by Boaz
Weinstein, Saba is a pioneer of credit relative value strategies
and capital structure arbitrage. Saba is headquartered in New York
City. Learn more at www.sabacapital.com.
Important Information
Saba Capital Management, L.P. (“Saba Capital”), Saba Capital
Master Fund, Ltd. (“Saba I”), Boaz R. Weinstein (“Mr. Weinstein,”
and together with Saba Capital and Saba I, “Saba”) and Paul
Kazarian (“Mr. Kazarian” or the “Nominee,” and together with Saba,
the “Participants”) have filed with the Securities and Exchange
Commission (the “SEC”) a definitive proxy statement and
accompanying form of GOLD proxy to be used in conjunction with the
solicitation of proxies from the shareholders of ClearBridge Energy
Midstream Opportunity Fund Inc., (the “Fund”). All shareholders of
the Fund are advised to read the definitive proxy statement and
other documents related to the solicitation of proxies by the
Participants, furnished to some or all of the Fund's shareholders
and is, along with other relevant documents, available at no charge
on the SEC website and http://www.sec.gov/. Information about the
Participants and a description of their direct or indirect
interests by security holdings is contained in the definitive proxy
statement filed by the Participants with the SEC on February 28,
2023. This document is available free of charge on the SEC
website.
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version on businesswire.com: https://www.businesswire.com/news/home/20230418005825/en/
Longacre Square Partners Greg Marose / Kate Sylvester,
646-386-0091 gmarose@longacresquare.com /
ksylvester@longacresquare.com
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