Edinburgh Worldwide board narrowly survives Saba vote
The board survives its second vote, but on a reduced majority.
20th January 2026 15:21
by Dave Baxter from interactive investor
The board of Edinburgh Worldwide Ord (LSE:EWI) has scraped through its second tussle with Saba Capital, surviving an attempt to unseat it by a fairly slim margin.
Some 53.2% of votes cast backed the board to stay in place, with 46.8% against.
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Saba proposals to remove the current board and install three directors of its choice saw investors representing more than 70% of the trust vote their shares.
While this exceeded the figure for last February’s requisitioned meeting (in which 64.7% of total issued share capital voted on the resolutions), the vote turned out to be a closer affair than last time, in large part because Saba has a greater stake this time round.
While a convincing 92.7% of shares not held by Saba opted not to remove the board, the sheer bulk of equity held by the activist increases the risk of a board losing, especially in the event of a low turnout.
Such a risk was illustrated when the Baillie Gifford US Growth Ord (LSE:USA) board only secured reinstatement by a narrow margin last year, thanks to opposition from Saba.
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Jonathan Simpson-Dent, chair of Edinburgh Worldwide, said: “For the second time in less than a year, Edinburgh Worldwide’s shareholders have voted decisively to reject Saba’s proposal to install its own nominees to the board and the uncertainty that would have entailed.
“Shareholders have clearly stated their preference for EWIT’s unique and differentiated mandate, investing in some of the world’s most exciting and transformative companies.”
Some commentators have been quick to cite the latest vote as a clear statement to Saba, with QuotedData head of investment companies James Carthew saying: “Surely the message must get through to Saba that investors don’t want it in charge.”
And yet the activist remains a problem for multiple trusts, especially the likes of Edinburgh Worldwide, Baillie Gifford US Growth and Herald Ord (LSE:HRI), where its stakes have come to around the 30% mark.
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Herald and Impax Environmental Markets Ord (LSE:IEM) have looked to tackle this in recent weeks with tender offers of up to 100%.
The Baillie Gifford trusts may be limited in their ability to do such a big tender offer, however, because of their exposure to unlisted companies, most prominently Elon Musk’s SpaceX.
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