Saba questions the SpaceX selloff while ISS supports the board of Edinburgh Worldwide

ISS, a shareholder advisor, has advised shareholders to reject Saba's plans to take over the board of the investment trust run by Baillie Gifford

At the next general meeting on January 20, shareholders are advised by independent voting adviser ISS to vote against the proposals of activist investor Saba Capital Management to replace the board of Edinburgh Worldwide Investment Trust (EWIT).

According to Jonathan Simpson-Dent, chair of Edinburgh Worldwide (LON:EWI), "independent voting adviser ISS has recommended that shareholders vote against ALL of Saba's resolutions for the second time within a year." "We remind everyone that Saba has a larger shareholding and, thus, more voting power this time, and we urge shareholders not to become complacent. The "

Additionally, Simpson-Dent stated that on Friday, January 9 at 2:00 PM, he would hold a live Q&A session to address any questions from shareholders.

Saba declared on November 27, 2025, that it would call a general meeting of Edinburgh Worldwide shareholders in order to replace the current board of the investment trust with three independent directors of its choosing. This came after seven investment trusts made comparable attempts the previous year.

The shareholders of all seven investment trusts rejected Sabas' proposals, making that attempt a failure.

Saba challenges EWIT's SpaceX divestment.

Saba requested transparency in an open letter to the EWIT board on January 7th regarding its October 2025 sale of about one-third of its SpaceX holdings.

Elon Musk, the CEO of Tesla, founded SpaceX, a space exploration company that plans to go public in 2026 with a £1.5 trillion valuation, according to Bloomberg.

SpaceX sold insider shares for £421 in December, which is roughly twice as much as the £212 per share sale in July, when it was valued at £400 billion, suggesting a current value of £800 billion.

As a result, any shares that EWIT sold in October would have been valued between £400 billion and £800 billion, which is significantly less than the amount that SpaceX is aiming for in its initial public offering.

For many investors, the most alluring aspect of owning EWIT is SpaceX.

In order to facilitate a possible merger with Baillie Gifford US Growth Trust (LON:USA), another investment trust that is managed by Baillie Gifford, similar to EWIT, Saba claims that the trust sold off a third of its shareholding at an inappropriate time.

Saba rejected the merger proposal that EWIT and USA had discussed with the activist investor. Due to Sabas's substantial stake in both trusts, the merger cannot proceed without its backing.

Saba asked the board of EWIT nine questions about the proposed merger with the USA and the sale of its SpaceX stake, which it estimates cost the trust £37 million. It asked that these questions be answered by January 9th.

Weinstein stated, "We reserve all of our rights, including to issue proceedings on behalf of EWI, unless and until we receive satisfactory responses to these questions and concerns."

On Friday, January 9 at 2:00 PM GMT, EWIT chair Jonathan Simpson-Dent will host an open Q&A session to address shareholder inquiries.

"Sabas' open letter today adds to the numerous inaccurate statements and misleading assertions it is making designed to mislead shareholders as part of this US hedge fund aggressive campaign to achieve its ultimate objective to seize control of the Company to prioritize its own commercial interests to the potential detriment of other shareholders," an EWIT representative stated. We anticipate responding to inquiries from shareholders during an open Q&A session this Friday, during which we will also address Sabas' false claims regarding SpaceX. The "

Sabas's worries about the EWIT board were clarified.

Saba's open letter comes after a presentation that was released on December 29 and in which Saba went into more detail about why it wants to replace the EWITs board.

In the presentation, Saba refuted EWIT's allegations that Saba is attempting to seize control of the investment trust and has neglected to reveal its plans. Saba claimed that because the proposed board members are independent, Saba will not have any control over the trust and, as a result, is unaware of their potential plans.

It criticized EWIT's claims to be maximizing long-term value for all shareholders, pointing out that over the last three and five years, EWIT's NAV and share price returns have lagged behind pertinent benchmarks and that the proposed merger with USA would benefit Baillie Giffords rather than shareholders.

It brought to light Simpson-Dents' prior role as HomeServe's chief financial officer from 2007 to 2009. For violating its Principles of Business from 2006 to 2011, the FCA fined HomeServe more than £30 million. Saba asserted that Simpson-Dent was appointed to the EWITs board without disclosing the FCAs' fine of HomeServe and their criticism of the HomeServes board and senior management, both of which Simpson-Dent was a member of.

"Sabas presentation contains numerous inaccurate statements designed to mislead shareholders as part of this US hedge funds aggressive campaign to achieve its ultimate objective to seize control of the Company for its own commercial advantage at the expense of other shareholders," an EWIT spokesperson responded.

It's obvious that Saba hasn't completed its homework. For instance, its assertion that the Chair's prior roles were not disclosed at the time of his appointment to the Board of EWIT violated FCA regulations is wholly untrue. There was no such breach, according to the company's announcement at the time of his appointment.

"Despite the fact that he was never directly criticized by the FCA or any other regulatory body, Sabas's reference to the Chair's position at HomeServe plc sixteen years ago and the FCA's subsequent investigation is a calculated attempt to disparage his reputation.

While simultaneously advocating for the appointment of its three US-based nomineesnone of whom have any prior experience with UK public companies or UK governance standardsSaba is evidently attempting to present a false narrative of poor governance through baseless claims.

Additionally, Sabas's presentation offers no details about its plans in the event that it is successful in seizing power. Saba must provide complete transparency and clarity on its intentions in order for shareholders to make an informed decision, as stated in our open letter released today. A "

You can watch the Sabas presentation here.

Sabas EWIT proposals will be rejected by L&G.

Another institutional EWIT shareholder, L&G, declared on January 6 that it would vote against Sabas's proposals.

The current board "seems to have been responsive to the contention of underperformance and has effectively managed to reduce its discount to Net Asset Value (NAV)," according to a statement from L&G.

The statement went on, "We are therefore voting against all proposals at the upcoming meeting, opting to keep the running of EWIT in the hands of the incumbent board at this time, given the potential conflict of interests between Saba, its nominees, and long-term investors."

Bloomberg reports that L&G owns about 0.5 percent of EWIT's stock.

The voting deadline for the Sabas Edinburgh Worldwide proposals is quickly approaching.

The deadline for voting on Saba's proposals is drawing near, according to Richard Stone, CEO of the Association of Investment Companies (AIC), an industry association that represents UK investment trusts.

"Shareholders might not be aware that the voting deadline on their platform is next week because the vote was announced during the hectic time just before Christmas," Stone stated.

Voting via an investment platform may require shareholders to cast their ballots prior to the meeting date. Below are the deadlines for voting on a few of the main platforms.

Investment Companies Association is the source.

"Private investors must have a voice in a decision that will determine Edinburgh Worldwide's future," stated Stone. Since Saba holds 30% of the shares, other shareholders must turn out in large numbers if they wish to be heard. The "