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Saba Capital Management has increased its shareholding in UK flexible office provider Workspace Group to 29.1%, making it the company's largest shareholder and reinforcing its campaign for strategic and governance changes. The latest investment comes ahead of Workspace's annual general meeting later this month, where Saba has proposed replacing the company's non-executive directors and advocated a property disposal programme. The increased holding leaves the activist investor just below the 30% threshold that would trigger a mandatory takeover offer under UK takeover regulations. Workspace has urged shareholders to reject Saba's proposals, arguing that its strategy would not support the company's long-term interests.
Saba Capital Management has increased its stake in UK-listed Workspace Group to 29.1%, becoming the office-space provider's largest shareholder and intensifying its campaign for strategic reforms ahead of the company's annual general meeting later this month.
A regulatory filing released in the past week showed that the activist investment firm raised its holding from 28.2%. The latest purchase continues Saba's rapid accumulation of shares during the year, having more than doubled its position from 13.5% at the beginning of January.
The increased stake strengthens Saba's influence as it seeks significant changes to Workspace's governance and business strategy. In June, the investor proposed replacing the company's non-executive directors, arguing that Workspace's shares were trading at approximately a 50% discount to its net asset value because of prolonged operational underperformance and strategic shortcomings.
Saba also outlined a disposal strategy involving 56 properties, contending that asset sales could unlock shareholder value and improve the company's financial performance. The proposals form part of the activist investor's broader effort to reshape Workspace's operating model and capital allocation strategy.
Workspace has rejected the proposals and, in the past week, urged shareholders to vote against Saba's resolutions at the forthcoming annual general meeting. The company described the activist investor's plan as high-risk, short-term in its approach and unsuitable for delivering sustainable value for shareholders.
Separately, Workspace recently announced a strategic shift towards what it described as an earnings-focused business model. Under the revised strategy, the company intends to dispose of selected assets and reinvest the proceeds into upgrading existing properties, with the objective of increasing rental income and supporting long-term value creation across its portfolio.
Saba's latest investment takes its shareholding to just below the 30% ownership threshold under the UK Takeover Code. Crossing that level would ordinarily require an investor to make a mandatory takeover offer for the remaining shares of the company.
Following the disclosure, Saba Capital declined to comment on whether it intended to pursue a takeover bid for Workspace. The company also did not provide any indication regarding future increases in its shareholding.
Workspace did not immediately respond to requests for comment following the latest filing.
The developments highlight growing shareholder activism within the UK listed real estate sector, where investors have increasingly challenged property companies trading at significant discounts to their reported net asset values. Activist funds have continued to press for portfolio rationalisation, governance changes and capital allocation strategies aimed at narrowing valuation gaps and improving shareholder returns, particularly as commercial real estate markets adjust to changing occupier demand and higher financing costs.
Source - Reuters
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