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Saba Capital Demands Answers on SpaceX Stake Sale
7 Jan
Summary
- Saba Capital urges new board elections for Edinburgh Worldwide.
- A recent 35% sell-down of SpaceX stake is questioned.
- A merger vote and board changes are set for January 20.
Saba Capital, a significant shareholder in Edinburgh Worldwide Investment Trust, is once again advocating for the election of a new, independent board. This renewed push follows concerns over a recent reduction in the trust's stake in SpaceX, which Saba Capital characterized as "suspiciously timed." The U.S. activist investor alleges that the approximately 35% sell-down in October was strategically executed to pave the way for a potential merger with the Baillie Gifford US Growth Trust.
This call for board changes is placing pressure on Edinburgh Worldwide ahead of a critical January 20 vote. Saba Capital is demanding clear and transparent explanations regarding the timing, valuation, and strategic justification for selling off a portion of the trust's SpaceX holdings. The investor group previously intervened in December, successfully blocking a merger between two other investment trusts managed by Baillie Gifford.
Edinburgh Worldwide had previously requested comprehensive answers from Saba Capital regarding its proposals by January 5. The situation highlights an ongoing tension between Saba Capital, led by Boaz Weinstein, and Baillie Gifford-managed investment vehicles. The outcome of the upcoming vote on January 20 will determine the future composition of Edinburgh Worldwide's board and its potential merger.
