|
Edinburgh Worldwide Investment Trust PLC said it would work to implement the proposed tender offers by 30% stakeholder Saba Capital Management LP, after shareholders shot down its own offer at a general meeting on Friday. ‘The tender offer was intended to provide shareholders, who have twice overwhelmingly rejected proposals by Saba Capital Management LP, with a deliverable and fair exit option to avoid ending up in a Saba-controlled vehicle,’ Edinburgh said in a statement. Edinburgh’s proposed its offer on March 10, with Saba announcing its own ‘enhanced liquidity proposal’ on March 30. Shareholders representing 68.4% of Edinburgh’s issued share capital voted on the proposal, up from 64.7% turnout for a vote on Saba proposals in February 2025, but down from 70.5% turnout at a vote earlier this year. Of the votes cast, 46.2% were in favour of the offer, with 53.8% against. Edinburgh said the votes in favour were made ‘almost entirely by Saba and two other institutions.’ As a result, Edinburgh said it is ‘making plans to implement the alternative tender offers that Saba has publicly stated it would recommend and which will at least give shareholders the choice of exiting at close to NAV or remaining invested. ‘We trust that any new directors will also endorse this new approach, as well as providing shareholders with greater clarity on their intentions regarding the company’s likely future direction.’ ‘These would provide shareholders with two opportunities to exit at NAV less costs, the first being soon after the AGM, and the second following a potential SpaceX IPO or liquidity event (and prior to any potential change in investment mandate),’ Edinburgh added. Edinburgh said shareholders’ rejection of its latest offer ‘only increases’ the likelihood that Saba succeeds in appointing its proposed new board at the annual general meeting on April 30. On March 30, Saba proposed its ‘enhanced’ offer, contingent on the election of a new board of directors. At the time, the New York-based hedge fund said the enhanced offer is ‘significantly superior in structure and governance to [EWI’s] proposed tender offer and is in the best interests of all shareholders.’ Saba said the offer was made ‘after listening carefully to shareholder feedback’. Under the offer, EWI shareholders would be granted three options: tender immediately and exit at NAV less costs, tender following a potential SpaceX initial public offering or liquidity event - but prior to any potential change in investment mandate - at NAV less costs; or retain their investment in EWI. Given ‘the presence of two distinct shareholder groups with clearly divergent objectives,’ Edinburgh’s board said it ‘will seek to engage with Saba and expects it to maintain its stated support.’ ‘Unless Saba expressly withdraws that support within the next seven days (having recommended this proposal only 11 days ago), the Board intends to proceed with making the first of the further tender offers available to shareholders during the week commencing April 20. This approach is intended to provide shareholders with a clear way forward and avoid any unnecessary delay or uncertainty that could arise following the possible appointment of Saba’s proposed new board,’ the company said. Commenting on the ongoing row, Association of Investment Companies Chief Executive Richard Stone said ‘Saba’s vote against the board’s exit tender proposal has deprived other shareholders of an opportunity to exit their investment at close to net asset value while retaining the potential future value from SpaceX.’ Stone added that the associate has put forward suggestions to the Financial Conduct Authority ‘to address gaps in the Listing Rules that have been exposed by Saba’s actions.’ ‘The board‘s decision to proceed with two further tender offers will give shareholders opportunities to exit should they wish to ahead of any potential change to the investment mandate. Saba has already stated it would support those tender offers and we trust that they will honour that commitment,’ Stone continued. Edinburgh Worldwide shares closed down 1.1% at 227.50 pence each in London on Friday. Copyright 2026 Alliance News Ltd. All Rights Reserved.
|
