Workspace Group Brokers React to AGM Victory Over Activist Investor Saba Capital

Workspace Group PLC has successfully defended its board against an attempt by US activist investor Saba Capital to install six new non-executive directors, securing what analysts have described as a decisive mandate for the property company’s recently installed management team.

At Thursday’s annual general meeting, shareholders rejected all of Saba Capital’s nominees whilst endorsing the existing directors and the strategic direction set out by chief executive Charlie Green and finance chief Tom Edwards-Moss. When excluding Saba’s own shareholding, support for Workspace’s directors reached at least 87.1%, whilst backing for the activist’s candidates did not exceed 13.3%.

Panmure Liberum analyst Bjorn Zietsman noted that the result removes the immediate governance overhang, allowing management to refocus attention on core operational priorities including leasing activity, occupancy recovery and capital recycling initiatives.

Stifel analyst John Cahill characterised the vote as a significant vindication of the management strategy. He argued that Saba’s apparent objective to sell Workspace’s assets and wind down the business would destroy shareholder value, as forced disposals would be unlikely to achieve prices approaching book value.

Whilst Saba could potentially return with further proposals, a practice not uncommon among activist hedge funds, its complete failure to secure any board positions may prompt a reconsideration of its approach. Reports suggest the activist has also built exposure to student accommodation group Unite Group PLC, potentially dividing its resources across multiple UK property campaigns.

The outcome was not without complication for Workspace. A resolution permitting the company to issue shares without first offering them to existing investors secured 67% support, falling short of the 75% threshold required for approval.

Stifel maintains its buy recommendation on Workspace, contending that the shares undervalue both the property portfolio and the new strategic direction. The stock currently trades at approximately a 50% discount to net tangible assets.

Shares in Workspace remained virtually unchanged at 349.8p on Friday following the announcement.