Saba boosts Workspace stake ahead of board vote

The activist is targeting six board seats at the UK property company.

Activist investor Saba Capital has increased its stake in Workspace Group to 28.2% ahead of the British flexible office provider’s annual meeting later this month, reinforcing its campaign to reshape the board and improve valuation.

The increase comes ahead of Workspace's July 23 meeting, where shareholders will vote on Saba's proposals to replace the company's non-executive directors.

Earlier this year, Saba urged Workspace to pursue a managed wind-down of the business, arguing that selling assets, repaying debt, and returning capital to shareholders would unlock greater value.

Workspace's board rejected the proposals, defending its existing strategy.

While the stake increase now positions Saba as the company’s second-largest shareholder, behind property developer Nicholas Roditi’s 29% stake, it does not guarantee victory for the activist.

Saba remains short of a controlling position and will need support from other investors to secure board changes at the meeting.

However, the increased ownership underscores Saba's conviction that Workspace's shares continue to trade at an unjustified discount to the underlying value of its property portfolio.

The activist has consistently reiterated support for its six director nominees, pushing back against Workspace’s claims that they lack independence.

Saba is fresh off recent board campaign successes at UK-based investment firms Edinburgh Worldwide, Impax Environmental Markets, as well as efforts to push Schroder UK Mid-Cap Fund for a 100% tender.

However, the UK’s Financial Conduct Authority (FCA) has proposed changes to listing rules for investment trusts in an effort to address conflicts of interest when significant shareholders, like Saba in many cases, nominate directors or appoint investment managers.

Ultimately, investor attention now turns to Workspace’s upcoming annual meeting, the result of which could determine not only the future direction of Workspace but also serve as a test of investor appetite for activist-led restructuring campaigns across the UK property sector.

Workspace Group’s stock was trading at GBP3.28 at 15:00 on Tuesday in London, mostly level from Monday’s close. The stock is down 17.2% year-to-date.

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