RCS - Edinburgh Worldwide - Flash update from Kepler Trust Intelligence

Edinburgh Worldwide Investment TrustAnnouncement

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RNS Number : 4648W  Edinburgh Worldwide Inv Trust PLC  12 March 2026

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.

CLICK HERE TO READ THE FULL REPORT
(https://www.trustintelligence.co.uk/investor/articles/news-investor-flash-update-edinburgh-worldwide-not-to-be-or-not-to-be-retail-mar-2026?utm_source=RNS&utm_medium=news)

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