Saba Capital Management has increased its shareholding in Workspace Group (LON:WKP) to 29.1% from 28.2%, a company filing showed on Tuesday. The activist investor's stake has grown substantially over the past months, more than doubling from a 13.5% holding disclosed in January.
Earlier this year, Saba escalated its campaign against the London-listed workspace landlord by moving in June to replace several of Workspace's non-executive directors. In its public criticisms, Saba highlighted what it described as years of underperformance and strategic missteps, pointing to the company's shares trading at roughly a 50% discount to net asset value as evidence of that record.
As part of its proposals, Saba has identified a disposal plan that it says would cover 56 properties. The investor's approach has centered on unlocking value through asset sales and governance change.
Management at Workspace has pushed back. In communications to investors last week, the company asked shareholders to vote against Saba's resolutions at the annual general meeting scheduled for later this month. Workspace described the activist's plan as "high-risk, short-sighted and not suitable for the company," urging shareholders to reject the proposals.
Separately, Workspace announced last month a new strategic direction framed as a "transformation to an earnings-focused business." That plan sets out using proceeds from asset disposals to carry out property upgrades, drive higher rental income and create long-term value for shareholders, according to the company.
The situation sets up a contest between an activist investor advocating immediate asset disposals and board changes and company management promoting a strategy to reinvest sale proceeds into property improvements and rental growth. Both sides have presented proposals to shareholders ahead of the annual meeting, which will determine whether Saba's slate and disposal recommendations receive support.
Context and implications
The filing on Tuesday formalizes Saba's larger position and follows a period of public disagreement between the investor and Workspace's board. The company's request that shareholders oppose the activist's measures and its own published transformation plan underscore the contested nature of the proposed path forward. Shareholders will decide the outcome at the upcoming annual general meeting.