New York hedge fund Saba Capital Management, the largest shareholder of Edinburgh Worldwide Investment Trust plc, said on Thursday it has recommended that if elected, its new proposed board directors should offer the fund’s shareholders “a full cash exit near net asset value (NAV).”

The Baillie Gifford-managed £860 million Edinburgh Worldwide Investment Trust said on Tuesday it is to face a third attempt by Saba to oust the Edinburgh Worldwide board and elect three new directors nominated by Saba.

Saba has proposed resolutions to be added to the notice of the company’s upcoming Annual General Meeting to enable EWI shareholders to elect its three new proposed directors and reject the re-election of the incumbent directors.

Saba said: “While we reiterate that the new Board will be fully independent from Saba, we recognise that shareholders would like the choice not to continue with the company.

“Therefore, we recommend that the new directors, if elected, offer all shareholders a 100% cash exit at 99% of the company’s NAV.

“Regardless of any future changes the new directors may elect to make to EWI’s investment mandate or manager, this tender offer would guarantee every shareholder the option to sell their entire holding at 99% of NAV – providing a clear and certain path forward.

“Although EWI currently trades at a slight premium, the unfortunate reality for shareholders is that we anticipate the discount will likely revert to near its prior levels once SpaceX is re-marked to its expected value.

“As a reminder, Saba has proposed resolutions to be added to the notice of the company’s upcoming Annual General Meeting to enable EWI shareholders to elect three new qualified, independent directors – Gabriel Gliksberg, Michael Joseph and Jassen Trenkow – and reject the re-election of the incumbent directors.”