30th Dec 2025 09:30
(Alliance News) - Edinburgh Worldwide Investment Trust PLC on Tuesday demanded clarity from Saba Capital Management LP, in response to the agitator's latest push for a board shakeup.
The Edinburgh-based investment fund, which cites "long-term" growth as its focus, addressed an open letter to Saba founder Boaz Weinstein.
Saba on Monday repeated a plea for EWIT shareholders to approve its proposal to replace EWIT's board, at a general meeting on January 20. As of Tuesday, Saba owns around 30% of the Scottish firm.
EWIT said it had proposed "credible options" which Saba refused, and as result, it is asking Saba for "full transparency and clarity regarding your demand to remove the company's entire independent board and replace it with your three US-based directors."
Specifically, EWIT asked Saba to detail the proposed nominees' experience with UK-listed firms, as well as their connections to Saba, and whether they had previously represented the New York-based hedge fund.
The Scottish firm set a January 5 deadline for Saba to provide "unambiguous answers" to questions on its agenda, should Saba succeed in electing its nominees to EWIT's board.
These include whether Saba intends to: change or take over as EWIT's investment manager or strategy; allow a full exit if the strategy changes; or increase management fees.
EWIT's questions are based on the assumption that Saba has the same objective it had just under a year ago, when it demanded management changes at several UK investment firms.
Saba's proposed changes and the resulting "liquidity event" for EWIT were rejected by shareholders, EWIT noted.
"Twelve months on, you have launched a substantially similar campaign although this time you have stayed silent on your agenda. We can only assume it is the same as before," EWIT added.
Earlier this month, Baillie Gifford US Growth Trust and EWIT had proposed a merger, but said Saba had blocked the tie-up.
Among the directors Saba is looking to replace is EWIT Chair Jonathan Simpson-Dent. Saba criticised EWIT for failing to disclose the chair's role as chief financial officer of HomeServe, "which received the largest retail company fine" in Financial Conduct Authority history.
Saba has also targeted the EWIT board's latest member, Gregory Eckersley, noting he "previously served as interim CFO of Lekoil Ltd. During his tenure, the company was defrauded after paying USD600,000 for a fake USD184 million loan agreement with an organisation pretending to be the Qatari sovereign wealth fund – which calls into question his judgement and the trustworthiness," Saba said on Monday.
Saba also believes the longest-serving member of the EWIT board should not be considered independent.
EWIT shares rose 1.9% to 218.50 pence on Tuesday morning in London. The stock has risen 15% in the past year.
By Holly Munks, Alliance News reporter
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