Mixed emotions as Glasgow remains in spotlight |
A couple of significant pieces of news produced mixed emotions, writes Ian McConnell.
And hopefully there will be plenty more success stories to come for a city which has certainly shown its resilience over years and decades, the Business Editor says.
It has been another week of highs and lows on the Scottish business scene.
Meanwhile, Glasgow has remained very much in focus in the wake of the Union Street fire.
A couple of significant pieces of news last Monday produced mixed emotions.
There was more cause for celebration of Prestwick Airport’s achievements with the announcement that Air China Cargo was increasing the frequency of its services from and to Chengdu Shuangliu International Airport in China to daily from four times per week.
Understandably, Prestwick Airport’s management team was swift to highlight the potential attraction of this daily service to Scottish exporters looking to transport seafood and Scotch whisky on the return legs to China.
Colin Dai, Prestwick Airport’s regional director for Asia, meanwhile highlighted the strategic importance of Chengdu on both the import and export front.
He said: “Chengdu is one of the most important logistics hubs in western China, and a critical gateway into the southwestern regions of the country.”
He added: “Daily connectivity enables Scottish exporters to move premium products such as salmon, seafood, and whisky into China while also supporting faster and more reliable imports into Scotland from one of China’s most dynamic manufacturing regions.”
My column in The Herald on Friday on Prestwick Airport’s latest success observed: “The momentum of the airport, which has been owned by the Scottish Government since 2013, is eye-catching.
“And it is great to see a long-term plan, pursued patiently by the airport’s management team, coming together so well.”
The column concluded: “The rescue of Prestwick Airport by the Scottish Government in 2013 was always a no-brainer, given the strategic importance of this very valuable asset and of course its key role in supporting the aerospace cluster in and around it.
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“That did not, however, stop critics attempting to use the airport as a political football.
“Thankfully, Prestwick Airport’s success in achieving its goals has rather quietened down this opposition crowd.”
Far less upbeat, though not surprising, news came last Monday from a major Scottish investment trust which had declared the previous week that it had “reached the end of the road” with a US hedge fund’s “obsession”.
Edinburgh Worldwide Investment Trust (EWIT) revealed last Monday that its “detailed analysis” had concluded US hedge fund manager Boaz Weinstein’s Saba is “likely to succeed in imposing” a new board, urging shareholders to support a tender offer to “pre-empt” this move.
EWIT - shareholders of which have already voted against two attempts by Saba Capital Management to oust the board - has called a general meeting for April 10 for a vote on its proposed tender offer for up to 100% of its issued share capital.
The investment trust, which had total assets of £857.29 million at January 31 and is run from Edinburgh by Baillie Gifford, has Elon Musk’s SpaceX as its single largest holding.
In a letter to shareholders published last Monday, EWIT chairman Jonathan Simpson-Dent said: “The tender offer we are proposing is carefully timed to pre-empt the high probability of a change of control in the coming weeks that would take your company down a very different path. Our detailed analysis concludes that Saba is likely to succeed in imposing its new board at the company's AGM which has to be held before the end of April. Shareholders must ask themselves - is this the future you want for your investment?”
He added: “This tender offer gives you a choice. Do you want to realise value from your investment before a likely change of control, or do you want to remain invested and see how the company evolves under Saba's influence and control. Our proposed tender offer gives you the freedom to opt out, to take a significant initial cash exit, while importantly retaining exposure to any future upside in the company's largest investment, SpaceX. The same cannot be said for the proposed Saba tender offer which we believe means you will be expected to walk away from SpaceX at its previous valuation.”
Mr Simpson-Dent declared: “Your trust remains under persistent attack from Saba. Together, we find ourselves at a defining moment regarding the future of Edinburgh Worldwide… Twice now, the majority of non-Saba shareholders have made their position clear, endorsing Edinburgh Worldwide's unique and exciting mandate and rejecting the alternative offered by Saba.”
EWIT has described the tender offer move as a “regrettable but necessary step”.
The aftermath of the Union Street fire on Sunday March 8 understandably remained very much in the spotlight last week.
While it is impossible to tell at this stage what will happen to the “Union Corner” site, it was heartening to hear some optimism about the potential for a major development there.
My column in The Herald last Wednesday observed: “Perhaps the most overlooked and very major success for Glasgow in recent decades is the massive amount of development along the likes of Bothwell Street and Waterloo Street and down towards the River Clyde.”
Referring to the Union Street fire, the column went on: “Looking at what was left of that building on the corner early last week, before the demolition began, it was impossible not to feel that an important part of the city’s heritage had been lost.
“However, what is crucial now is to look forward…And when it comes to attracting private investors to Glasgow, it is important that the many success stories in the city over recent decades are told.”
Hopefully, there will be plenty more success stories to come for a city which has certainly shown its resilience over years and decades.