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Workspace Group has reiterated its willingness to engage with all shareholders, including Saba, while rejecting the activist investor's proposal to accelerate or increase property disposals. The company said such a strategy would be unrealistic in the current market and could force it to sell assets at deeper discounts. The board maintained that its existing business strategy, management changes and medium-term plan are designed to improve earnings, strengthen customer offerings and deliver higher long-term returns. It also agreed that the company's current share price does not reflect its underlying value.
Workspace Group has responded to materials issued by shareholder Saba, stating that its board remains open to constructive discussions with all shareholders, including Saba, while maintaining that the activist investor's proposal to speed up or increase property disposals is not in the company's best interests.
The company said it continues to believe that accelerating asset sales in the current market would be unrealistic. According to the board, such an approach would effectively position Workspace as a forced seller and could result in assets being sold at wider discounts than those achieved in its recent disposals.
Workspace maintained that its current strategy remains focused on improving earnings through an adjusted operating model that is better suited to its space and managed business formats. The board believes this approach will help the company provide better workspace solutions for customers while generating stronger long-term returns for shareholders.
Referring to its recently announced full-year results, the company said its medium-term strategy is intended to strengthen operational performance and maximise shareholder value. It added that management changes have already been implemented as part of this broader plan to improve the business and enhance returns over time.
The company also acknowledged Saba's view that Workspace's current share price does not reflect the underlying value of the business. However, it maintained that improving business performance through its existing strategy, rather than accelerating property sales, remains the most appropriate way to unlock that value.
Workspace further stated that its board remains willing to continue constructive engagement with all shareholders, including Saba, as it executes its long-term business strategy.
The exchange follows Saba's recent efforts to push for strategic changes at Workspace, with the activist investor advocating a faster disposal programme to improve shareholder value. The company, however, has consistently argued that disciplined asset management and operational improvements are better suited to current market conditions than large-scale property sales.
Source Reuters
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