UK's Workspace backs strategy as activist investor Saba mounts pressure

July 9 (Reuters) - UK's Workspace Group urged its shareholders on Thursday to vote against activist investor Saba Capital's proposals at its annual general meeting later this month, while backing its turnaround strategy and board.

Here are some details and context on Saba's demands from Workspace's board: 

• Saba Capital, Workspace Group's second-largest shareholder with a nearly 27% stake, has repeatedly demanded reforms at the office-space provider, including changes to its strategy and board.

• "(The) Board continues to firmly believe Saba's proposal to accelerate or increase the volume of disposals is unrealistic in the current market, and it positions Workspace as a forced seller and will likely result in wider discounts than we have recently achieved," Workspace said.

• "Saba's plan is high-risk, short-sighted and not suitable for Workspace," it added.​

• Workspace unveiled a "transformation to an earnings-focused business" strategy on June 10, reinvesting disposal proceeds in property upgrades to grow rental income.

• "Whereas both Workspace and Saba agree that assets must be sold, we disagree fundamentally about what to do with the proceeds," Saba Capital said in a statement on Thursday.

• The proceeds should be used to buy back shares to create immediate and highly certain value for continuing shareholders, Saba said, reiterating that its strategy generates higher shareholder returns than the company's existing turnaround strategy.

• Saba has proposed six changes to the Workspace board, which the company has opposed and urged shareholders to vote against at its meeting due on July 23.

(Reporting by Prerna Bedi in Bengaluru; Editing by Rashmi Aich)