Edinburgh SpaceX investment firm resists bid to oust chiefs

Saba has built up a 21% stake in Edinburgh Worldwide, which is managed by Baillie Gifford.

However, the board of the trust declared it “retains a strong conviction” in Edinburgh Worldwide’s “vision and strategy”. In a statement to the stock market, the board noted that the strategy, performance and processes of the trust had the subject of a “thorough review” in conjunction with Baillie Gifford and independent advisers, with measures designed to set “Edinburgh Worldwide on a path to renewed growth” subsequently approved by shareholders on December 18.

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Moreover, Edinburgh Worldwide said it worked with Baillie Gifford on a number of changes to the way the trust is managed and its investment managers, as well as a potential distribution of up to £130m to shareholders. Luke Ward and Svetlana Viteva have become co-managers of the trust alongside Douglas Brodie, and the portfolio will be rebalanced with “increased focus from fewer holdings and a better balance between sectors and financial maturity to improve resilience”. The trust said it will also broaden its “field of play for game-changing businesses” by increasing its upper market capitalisation threshold to $25 billion from $5bn.

Edinburgh Worldwide, which according to its most recent factsheet has 8.4% of its £788.81m assets in SpaceX, note that the discount of share price to net asset value per share has “narrowed significantly this year.. to the point that the share price has recently been trading close to NAV”.

Jonathan Simpson Dent, chair of Edinburgh Worldwide, said: “Since taking over as chair in March, I have worked closely with the board and the manager to take decisive action to create a framework for improved future performance of the trust for the benefit of all our shareholders. As we continue to implement these changes, including the resolutions passed today, I remain committed and excited for the future of Edinburgh Worldwide.”