Story
Saba Capital Boosts Workspace Group Stake to 29.1% Amid Boardroom Dispute
Summary
Activist investor Saba Capital Management has increased its ownership in office provider Workspace Group to 29.1%, escalating a campaign to overhaul the company's board and strategy ahead of a shareholder vote.
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.
AdWorkspace 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.
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