Edinburgh Worldwide (EWIT) shareholders once again rejected Saba Capital’s proposal to overthrow the investment trust’s board at an extraordinary general meeting held today (20 January).
Some 53.2% of votes were against Saba’s proposals, which would have seen the board of directors replaced with Saba’s nominees.
When taking out Saba’s c.30% share in the trust, 92.7% of the shares voted were cast against the proposals.
See also: Saba Capital opposes Baillie Gifford trusts merger
Turnout was high, beating Saba’s previous attempt to overthrow the board a year ago, as over 70% of the total issued share capital voted on the resolutions. The board noted a high level of retail participation through platforms.
The vote had followed a feud between the board and its largest shareholder in recent weeks, with Saba founder and CIO Boaz Weinstein criticising EWIT’s performance in recent years and its decision to trim a position in SpaceX.
“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,” said board chair Jonathan Simpson-Dent. “The board is resolutely focused on building momentum through the Path for Growth strategy which has delivered strong returns for shareholders since its implementation.
“Saba remains our largest shareholder and we will continue to seek constructive engagement with them to develop potential solutions that allow us to move forward,” he added.
“Following a year of significant and costly distraction, we are ready to return our full attention to our primary purpose: investing in innovation, transformation, and exceptional potential in a way that respects the clear wishes expressed by the majority of shareholders both last February and again today.”
See also: Saba Capital calls for managed wind-down of Workspace Group
Reacting to the vote, QuotedData head of investment companies James Carthew, said: “So, a record turnout and almost everyone bar Saba rejecting its proposals. Surely the message must get through to Saba that investors don’t want it in charge; not of EWI, nor Herald, nor Impax Environmental Markets, nor any other trust for that matter.
“If it wants to run a trust it must IPO one. Time for it to admit defeat and accept the generous exit terms that Herald and Impax Environmental have put on the table.”
