ASA Gold and Precious Metals Limited faces mounting calls from a major shareholder to deliver a liquidity option at or near net asset value before advancing its proposed transformation into a credit-focused business development company.

Axel Merk, who holds more than 300,000 shares in ASA Gold and Precious Metals Limited, has formally requested that the board provide shareholders with a meaningful exit opportunity before asking them to vote on the restructuring. The proposed conversion would pivot the closed-end precious metals fund into a yield-oriented business development vehicle managed by Saba Capital Management, while also redomiciling the company from Bermuda to Delaware.

The board approved the conversion proposal on September 4, 2026, following a strategic review led by a special committee. The transaction is targeted for completion by year-end, subject to shareholder approval. Prior public filings indicate Saba has built an ownership stake of more than 32% in the company, expanding significantly from its earlier position of approximately 17.18%.

Merk, who stepped down as Chief Operating Officer in June 2026 ahead of Merk Investments LLC concluding its tenure as investment adviser at the end of that month, argued that current holders should not be forced to shoulder substantial restructuring and tax costs without first receiving a clear pathway to realize net asset value. Dismantling the existing precious metals portfolio to fund the transition could trigger heavy tax consequences for taxable holders holding unrealized gains.

The activist shareholder contends that implementing a direct tender offer prior to any vote would protect existing investors from being locked into a transformed vehicle whose shares could continue trading at a discount.

Read the full announcement: Axel Merk Calls on ASA Board to Give Shareholders Liquidity at Nav Before Saba BDC Conversion