Edinburgh Worldwide (EWI)

12/03/2026

Flash update from Kepler Trust Intelligence

In April 1940, the destroyer HMS Glowworm was battered by the much larger Admiral Hipper, while the latter was shepherding a German invasion force to Norway. Glowworm's captain took the decision to ram the German ship as it was closing in to finish her off; in the action, one hundred and nine of her crew died, including the captain (who was awarded the Victoria Cross). Sometimes there really is no good option in life.

In a much less serious and a much more civilised quandary, the directors of Edinburgh Worldwide (EWI) have decided they have no other option but to scuttle the ship, and are asking shareholders to do their bit. One final time, shareholders have to act in order to prevent their money ending up in the hands of parties with unclear intentions and who have been rejected by shareholders twice. This time, EWI itself will have to be sacrificed in order to ensure shareholders get their money back and aren't trapped in a vehicle they never voted for, run by those who are happy to wrest control from a minority position despite the wishes of their fellow owners.

The board has not managed to come to an agreement with Saba, and has thus decided to offer a 100% cash tender offer. This would initially give shareholders 85% of their position back in cash at NAV less costs. The remaining 15% would be returned when SpaceX is sold in a crystallization event which the board expects to be possible in the next 12 months.

Kepler View

Sadly, the chance to invest in Edinburgh Worldwide (EWI) has gone. It is - or was - a highly differentiated proposition which added the exciting potential in unlisted equity to the exposure to high growth global small and mid caps in the Baillie Gifford Global Discovery fund, run by the same team. However, as Saba has shown it will not cease in its attempts to take control, either EWI ends on their terms or the board's terms. In that light, we think all shareholders should vote with the board, primarily because this is the only way to ensure that the tender goes ahead as promised. It is possible that if Saba's board members are elected, they will decide not to go ahead with the tender at all, and this is one reason Saba might not vote with the board.

Another reason they might vote against is that Saba do intend to sell the listed portfolio but want to retain the position in SpaceX, which would say a lot about their views on the return potential in that holding. Elon Musk, who owns about half the company, has been rumoured to be seeking to IPO it this summer, with the valuation of $1.5trn being discussed. This would be about 75% above its valuation in December. The board's proposals should see shareholders benefit from the gains made in any IPO, whereas Saba's would likely not.

As such, it is time to bite the bullet. We don't want to over-stress the parallels to the much more serious fate of the Glowworm, which is a true tale of heroism and tragedy. However, the extremity of the example really does throw the essentials of the situation into relief. Glowworm faced destruction whatever course of action it took, as do EWI shareholders. The captain decided to take matters into his own hands and end things on his terms. Sadly, it is time for EWI shareholders to do the same.

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