Workspace Group PLC (LSE:WKP) has seen off Saba Capital's attempt to replace its non-executive directors, handing the property company's new management team what analysts called a "decisive" victory.
All six of the US activist investor's nominees were rejected at Thursday's annual meeting, while shareholders backed the existing directors and the strategy outlined by chief executive Charlie Green and finance chief Tom Edwards-Moss.
Excluding Saba's holding, support for Workspace's directors was at least 87.1%, while backing for the activist's candidates reached no more than 13.3%.
Saba could return with further proposals, and analysts cautioned that repeated attempts are common among activist hedge funds. However, its failure to win any of the board votes may force it to reconsider its approach.
Panmure Liberum analyst Bjorn Zietsman said the result removed the "immediate governance overhang" and should allow attention to return to leasing, occupancy recovery and capital recycling.
Stifel's John Cahill described the vote as a "significant vindication" of management's strategy, arguing that Saba's apparent plan to sell Workspace's assets and wind down the business would destroy value because forced disposals were unlikely to achieve prices close to book value.
The result was not an entirely clean sweep for Workspace. A proposal allowing the company to issue shares without first offering them to existing investors secured 67% support, short of the 75% required.
Saba has also reportedly built exposure to student accommodation group Unite Group PLC (LSE:UTG), potentially stretching its resources across two UK property campaigns.
Stifel retained its 'buy' recommendation, arguing that Workspace's shares undervalue both its portfolio and the new strategy, with the stock trading at around a 50% discount to net tangible assets.
Shares in Workspace were virtually unmoved at 349.8p on Friday.
