Workspace Rejects Wind-down Plan, Faces Saba Capital’s Push for Board Changes
Workspace Board Decision and Investor Pressure
May 8 (Reuters) - Flexible office-space provider Workspace said on Friday its board has rejected investor Saba Capital's proposal to wind down the business over 12 months, calling the plan "not achievable" and unlikely to deliver the best value for shareholders.
The company also said it received a shareholder request to change members of its board at its next annual meeting.
Market Context and Company Challenges
Workspace has been under pressure as more companies adopt hybrid working, leading many businesses to reduce office budgets or delay signing leases.
Key Details of Saba Capital’s Proposals
Here are some details:
Board Changes Sought by Saba Capital
• Saba Capital wants five current non-executive directors to be removed and four new non-executive directors appointed.
Upcoming Discussions and Shareholder Meetings
• The proposals are set to be discussed at Workspace's AGM on July 23.
Saba Capital’s Stake and Wind-down Proposal
• Saba Capital, which holds roughly 18.21% of Workspace shares, had proposed selling down the business over a year to reduce the gap between the company's market value and the value of its assets.
Workspace’s Response and Strategic Outlook
• Workspace said it held discussions with Saba Capital but decided the proposal would not maximise shareholder value.
• The company said it remains confident in its strategy and will provide further details, along with its full-year results, on June 10.
Financial Outlook and Recent Warnings
• Last month, Workspace cautioned that profit in fiscal 2027 would fall sharply from levels seen in 2026, citing lower rents and higher costs.
(Reporting by Ankita Bora in Bengaluru; Editing by Sherry Jacob-Phillips)
