12th Feb 2026 13:59
(Alliance News) - Saba Capital Management LP on Thursday recommended the option of "a full cash exit" for shareholders of Edingburgh Worldwide Investment Trust PLC.
The New York-based hedge fund focused on "capital structure arbitrage" on Tuesday proposed three new directors for EWIT, of which Saba is the largest shareholder, with around 30%.
Saba has proposed to appoint Gabriel Gliksberg, Michael Joseph and Jassen Trenkow to the 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 on Wednesday advised shareholders take no action, and await a further announcement before the annual general meeting, which is due by the end of April.
Current EWIT Chair Jonathon Simpson-Dent had said: "For the third time, Saba is seeking to replace the entire independent board with its own nominees in order to take control of the company."
At a meeting 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.
The activist-investor has since suggested that a new independent EWIT board, if elected, should allow investors to exit EWIT shares in cash "near net asset value".
"While we reiterate that the new board will be fully independent from Saba, we recognise that
shareholders would like the choice not to continue with the company," Saba said on Thursday.
"Therefore, we recommend that the new directors, if elected, offer all shareholders a 100% cash exit at 99% of the company’s NAV. Regardless of any future changes the new directors may elect to make to [EWIT's] investment mandate or manager, this tender offer would guarantee every shareholder the option to sell their entire holding at 99% of NAV – providing a clear and certain path forward."
Among Saba's concerns is the decision by investment manager Baillie Gifford to reduce EWIT's stake in SpaceX Corp. Back in October, EWIT cut its share of Elon Musk's aerospace firm, slated to go public later this year, by around 35%. Baillie Gifford US Growth Trust PLC cut its own stake by nearly half.
"Although [EWIT] currently trades at a slight premium, the unfortunate reality for shareholders is that
we anticipate the discount will likely revert to near its prior levels once SpaceX is re-marked to its
expected value," Saba said Thursday.
Edinburgh Worldwide shares were down 0.2% to 235.51 pence on Thursday afternoon in London. The stock has gained 28% in the past year, but is down 44% over the past 5 years.
Saba also claims that Edinburgh Worldwide did not properly disclose a GBP30.6 million fine issued by the UK Financial Conduct Authority to HomeServe Membership Ltd, of which Chair Simpson-Dent was a director "at the relevant time".
According to Simpson-Dent, the hedge fund is "repeating a number of misleading statements that have featured throughout its aggressive and personal campaign".
By Holly Munks, Alliance News reporter
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