Shareholders are being called to action to prevent a US hedge fund from taking over a key investor in Elon Musk’s SpaceX. The Edinburgh Worldwide Investment Trust (EWIT) faces a takeover attempt by Saba Capital, a New York-based hedge fund led by financier Boaz Weinstein, known for his skills in poker. Weinstein aims to replace the current board with his three selected candidates.

EWIT, which holds a significant stake in Musk’s space exploration company valued at approximately £165 million, is set to conduct its annual general meeting later this month. During this meeting, all board members will be up for re-election, presenting a crucial moment for the trust’s future.

This marks Weinstein’s third attempt to overthrow the board, following two previous defeats. His earlier efforts—one last year and another in January—were blocked by a strong turnout of EWIT’s more than 20,000 shareholders, many of whom are small investors opposing his takeover strategy.

However, EWIT’s leadership has raised concerns this weekend, suggesting that Saba Capital is banking on shareholder apathy to decrease voter participation at the AGM. Such a scenario could allow Weinstein to secure the necessary votes to gain control, which would enable the hedge fund to acquire EWIT’s valuable SpaceX investment at a minimal cost.

To counter this threat, EWIT’s management is urging small investors to actively vote against Weinstein’s nominees and to support the current board members. Investors using online platforms are particularly encouraged to cast their votes early, as their submission deadlines might fall up to a week before the meeting.

Stop the SpaceX heist: Boaz Weinstein wants to turf out EWIT’s entire board and replace them with three of his own hand-picked nominees

They have urged small investors to make sure they vote against Saba’s board nominees and support the existing directors, with those holding shares through investment platforms being asked to vote earlier as their deadlines could be as much as a week before the meeting.

EWIT investors using the Fidelity platform will need to cast their votes by this Friday (April 24) while for customers of Hargreaves Lansdown, Interactive Investor and AJ Bell the cut-off date is on Monday (April 27). Investors can also vote at the AGM on the day if they attend.

EWIT chairman Jonathan Simpson-Dent told The Mail on Sunday: ‘If investors turn out in significant numbers, as they did in January, Saba can be defeated and shareholders can protect access to high-growth companies like SpaceX.’

Last week, shareholder advisory firms PIRC and ISS recommended investors reject Saba’s nominees.

 PIRC said it had ‘concerns’ the three candidates could undermine the board’s independence. ISS said Saba had ‘not presented a compelling case for change in control’.

Baroness Altmann, a former government pensions minister and shareholder rights’ campaigner, said: ‘Saba has cynically relied on weak shareholder protections so far but previous rounds of this battle have shown the power ordinary shareholders have to defend their own interests.’

The tussle over the trust has taken on renewed urgency after reports emerged that SpaceX is planning to list later this year, in what is likely to be one of the biggest stock market floats in history.

It is estimated that the firm could be worth as much as £1.3 trillion when it goes public, meaning EWIT’s stake could surge, generating hefty returns for investors. 

Richard Stone, head of industry body the Association of Investment Companies, said: ‘If shareholders don’t come out in force, Saba will be able to grab the steering wheel of Edinburgh Worldwide with its valuable SpaceX flotation around the corner.’

The trust has estimated that at least 75 per cent of its investors would need to vote for it to be in with a chance of defeating Saba, which is its largest shareholder and controls around 30 per cent of the business. 

This is slightly higher than the record 70 per cent turnout the trust recorded in January when Saba last attempted to take over the board.

Saba scored a victory earlier this month when it defeated proposals put forward by EWIT’s board that would have allowed shareholders to cash out before it takes control of the business.

The sector suffered a blow on Thursday when investors in Impax Environmental Markets, another UK firm targeted by Saba, approved an exit offer that would effectively dismantle the trust, despite shareholders voting to continue the business last year.

Trusts have demanded City watchdog, the Financial Conduct Authority, intervene to stop minority investors such as Weinstein calling repeated votes to force their agenda on companies.

But the regulator’s head of markets Simon Walls previously said such events were part of the ‘rough and tumble’ of finance.

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