Saba Capital Boosts Workspace Group Stake to 29.1% Amid Boardroom Dispute

Saba Capital Management has increased its stake in Workspace Group (LON:WKP) to 29.1% from a previous position of 28.2%, according to a regulatory filing on Tuesday. The move signals an intensification of the activist investor's push for significant changes at the London-based flexible office provider.

Escalating Activist Pressure

The increased shareholding gives Saba additional leverage ahead of Workspace Group's annual general meeting scheduled for later this month. In June, Saba initiated a move to replace the company's non-executive directors, citing what it called "years of poor performance and wrong strategic decisions."

Saba has more than doubled its position in the company since January, when it held 13.5%. The activist firm has pointed to Workspace's stock trading at an approximate 50% discount to its net asset value as evidence of a failed strategy. As part of its proposed overhaul, Saba has identified a disposal plan covering 56 properties.

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Workspace Mounts Defense

Workspace Group's management has firmly opposed Saba's proposals, urging shareholders last week to vote against the resolutions. The company characterized the activist's plan as "high-risk, short-sighted and not suitable for the company."

In response to the pressure, Workspace announced its own strategic plan last month, described as a "transformation to an earnings-focused business." The company's strategy involves using capital from asset sales to reinvest in upgrading its property portfolio, with the goal of increasing rental income and delivering long-term shareholder value.