9th Jul 2026 11:58
(Alliance News) - Workspace Group PLC on Thursday responded to Saba Capital Management LP's recent letter and presentation, calling the activist investor's proposed strategy "an accelerated wind-down" in disguise.
Saba proposed a managed wind-down of the London-based flexible workspace provider back in January. It holds a 28.21% stake in Workspace as of July 1.
After Workspace deemed that this proposal was neither achievable nor likely to maximise shareholder value, Saba in May sent a requisition notice proposing the removal of five non-executive directors, and their replacement with four Saba nominees, at Workspace's annual general meeting on July 23.
In June, Saba released an open letter proposing a new strategy focused on accelerated property disposals and share buybacks. It then reiterated these plans in on Tuesday, claiming that "Workspace has failed its investors" and that its disposal-focused strategy would "concentrate the portfolio around stronger assets while recycling capital into highly accretive share repurchases".
Responding on Thursday, however, Workspace claimed that Saba's strategy "is high-risk, short-sighted and NOT suitable" for the company, and urged shareholders to reject the latter's resolutions at the AGM.
Workspace shares were up 0.3% at 323.92 pence on Thursday in London, but have fallen 62% over the last five years.
Workspace acknowledged that its stock price "doesn't reflect the value of our business," but insisted that it "has a clear, disciplined strategy to deliver long term sustainable value for ALL shareholders and the right board and management to implement and oversee it".
Workspace's current plan, as stated alongside its annual results in June, is to "reposition" its business around changes in tenant needs, by recycling proceeds from property sales "into low-risk, high-return portfolio improvements including a new managed offer, alongside a space-only offer".
The company said Saba's new plans are "a further attempt to disguise what the board believes remains, in substance, an accelerated wind-down proposal which envisages the execution of a higher number of disposals at narrower discounts than recent volumes or realised discounts suggest can be achieved."
In particular, it stated that the investment market for its properties "remains slow by its nature," adding: "The level of interest received to date does not support Saba's estimation of 50-75 credible potential buyers (and none of those identified in any materials published by Saba to date have shown interest)."
"The board continues to firmly believe Saba's proposal to accelerate or increase the volume of disposals is unrealistic in the current market, and it positions Workspace as a forced seller and will likely result in wider discounts than we have recently achieved," Workspace added.
It also said its current board "is experienced, has adapted to challenging markets and has a clear, disciplined plan".
By Emma Curzon, Alliance News reporter
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