Flexible office group Workspace has intensified its campaign against activist investor Saba, urging shareholders to reject proposals that it says pose a "clear risk of value destruction" ahead of a pivotal vote later this month.
Key Proposals and Stake
New York-based hedge fund Saba, led by founder and chief investment officer Boaz Weinstein, recently increased its stake in Workspace to 28%, making it the second-largest shareholder. In January, Saba called for the company to be wound down, claiming its shares traded below the value of its properties. In May, it demanded the removal of all six non-executive directors and their replacement with Saba nominees.
Workspace has responded by urging investors to vote against these proposals at its annual general meeting (AGM) on July 23. The company described Saba's plan for a forced sell-off of properties as "high-risk, short-sighted and not suitable."
Financial Challenges
Workspace's shares have fallen to their lowest level in over a decade, following profit warnings due to rising costs and falling rents. In May, the company said results for the year to March 2027 would be impacted by lower rents and occupancy rates amid economic uncertainty, as well as higher debt and energy costs. It is bracing for a "substantial step down" in earnings for 2026-27.
Board's Response
On Thursday, Workspace stated: "We recognise the current share price doesn’t reflect the value of our business – accordingly, the board has proactively taken steps to develop an enhanced strategy and will continue to keep an open dialogue with our shareholders." The board emphasized it has a "clear, disciplined strategy to deliver long-term sustainable value" and the right team to oversee it.
The company added: "Workspace shareholders deserve the opportunity to see this plan, which the board believes is lower risk and will deliver superior value compared to Saba’s proposals, come to fruition. The board sees a clear risk of value destruction in the execution of a stealth 'managed wind-down' plan by Saba nominees with limited operational public listed REIT experience."
Vote Timeline
Shareholder votes on AGM resolutions must be submitted by July 21, with the AGM scheduled for July 23.
