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Activist hedge fund Saba Capital Management LP on Monday noted that fellow shareholders of Edinburgh Worldwide Investment Trust PLC had rejected what Saba called a ‘deeply flawed’ tender offer. This comes after EWIT shareholders on Friday voted against the the Edinburgh-based investment firm’s tender proposal, which it said was intended for shareholders to realise value ‘while retaining exposure to SpaceX’. Shareholders representing 68.4% of EWIT’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. EWIT said the votes against were made ‘almost entirely by Saba and two other institutions.’ Saba has a majority stake of about 30% in EWIT. As a result, EWIT on Friday 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.’ For its part, Saba has welcomed the outcome, and backed its own ‘enhanced liquidity proposal’, which it touts as offering better tax management for investors. The New York-based agitator on March 30 proposed three options, contingent on the election of a new Saba-nominated board. EWIT investors can tender their shares immediately and exit at net asset value less costs. Alternatively, they can tender following a potential SpaceX initial public offering or liquidity event - but prior to any potential change in investment mandate - at NAV less costs. The final option is for investors to retain their EWIT holdings. Saba has proposed to elect Gabriel Gliksberg, Jassen Trenkow and Michael Joseph to EWIT’s board. Gliksberg is the founder of ATG Capital Management, Joseph is a chartered accountant and deputy chief investment officer of Stansberry Asset Management and Trenkow is a former staffer of Barclays PLC and Goldman Sachs Group Inc. EWIT shareholders will vote on the election of Saba’s nominees at an April 30 annual general meeting. Saba has said it will not support any further proposals from EWIT’s board ahead of the meeting. It backed its nominees, whilst criticising EWIT Chair Jonathon Simpson-Dent and his fellow directors for being ‘out of touch with their own shareholders’. Simpson-Dent previously has argued that Saba is trying to take control of the company. Back in January, 93% of EWIT shareholders, excluding Saba’s voting rights, rejected Saba’s proposals to replace the EWIT board. Saba had attempted a similar crusade a year earlier, which also failed. Saba on Monday argued that EWIT’s directors have failed to address what Saba sees as underperformance in recent years, prioritising ‘self-interests at the expense of shareholders’ financial interests’. EWIT shares traded 2.8% lower at 221.25 pence on Monday morning in London, having risen 46% over the past 12 months but fallen 39% in the past 5 years. ‘The new directors put forth by Saba for election at the upcoming AGM possess the investment management and board experience necessary to administer [Saba’s] proposal, which would offer shareholders greater optionality, more effective management of any tax consequences and the ability to see the SpaceX position through to IPO,’ Saba stressed. Commenting on the ongoing tussle, Association of Investment Companies Chief Executive Richard Stone on Friday 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 AOIC has put forward suggestions to the UK Financial Conduct Authority ‘to address gaps in the listing rules that have been exposed by Saba’s actions.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
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