Saba secures breakthrough as UK trust backs SpaceX-linked plan

Saba Capital Management has secured a notable victory in his campaign targeting UK-listed investment trusts, after Edinburgh Worldwide Investment Trust moved to support a shareholder exit proposal aligned with its strategy, according to a report by Bloomberg.

The trust, managed by Baillie Gifford, said it will proceed with tender offers that would allow investors to exit at net asset value, minus associated costs. These options may be executed in the near term or linked to a future liquidity event, such as a potential listing of SpaceX.

The decision follows the rejection of the board's original proposal, which failed to gain sufficient backing from shareholders. That plan would have returned roughly 85% of capital in cash, with the remainder -- tied to the trust's SpaceX exposure -- deferred until a future monetisation event.

The outcome marks a significant step forward for Saba boss Boaz Weinstein, who has been pushing for changes across a number of UK trusts trading at persistent discounts since late 2024. While earlier attempts to take control of several vehicles were unsuccessful, pressure from Saba has prompted governance and structural adjustments in some cases.

At Edinburgh Worldwide, a sizeable bloc of shareholders -- including Saba and other institutional investors -- voted against the board's proposal, tipping the balance in favour of an alternative approach.

Attention now turns to a shareholder vote scheduled for April 30, where investors will decide whether to replace the current board with nominees put forward by Saba. A successful outcome for the activist could pave the way for the hedge fund to assume management of the trust.

The board acknowledged the setback, noting the increased likelihood of changes to its composition. It added that its immediate focus is on ensuring shareholders retain access to viable liquidity options amid the evolving situation.

Saba Capital declined to comment on the latest developments.

In a statement Saba said: "We thank our fellow shareholders for their support in rejecting the EWI Board's deeply flawed tender proposal, which would have forced shareholders into untradeable SpaceX tracker shares while exposing them to significant potential tax liabilities."

The company went on to say that it remains confident that "its previously announced Enhanced Liquidity Proposal is the best outcome for shareholders," and that new directors put forth by Saba for election at the upcoming AGM possess the investment management and board experience necessary to administer this proposal, which would offer shareholders greater optionality, more effective management of any tax consequences and the ability to see the SpaceX position through to IPO.