News

Former Saga owner invests £100m in over-50s specialist

The former owner of Saga is returning to the over-50s travel and insurance group by investing £100 million to shore up the company’s finances.

Sir Roger de Haan, who sold Saga for £1.35 billion in 2004, will inject the funds in return for a stake in the company of about 20%. The business is seeking a further £50 million from existing investors.

Saga said that de Haan would spend £60.6m buying 20% of Saga shares at 27p per share, almost twice the closing price of 13.61p on August 28.


MoreSaga expands Covid-19 travel insurance cover

Saga reveals £44m refund payouts


He will also invest up to £39.4 million in share placings at a maximum issue price of 15p per share.

Alongside his investment, Sir Roger would join the board and become non-executive chairman, taking over from Patrick O’Sullivan, for an expected term of three years.

A further placing at a maximum price of 15p a share to existing investors is expected to bring the total fundraising to £150 million.

In a statement, the company said: “The proposed equity raise is intended to strengthen the company’s financial position against the backdrop of the Covid-19 outbreak and the ongoing suspension of travel and to better position Saga for longer-term recovery and growth.”

De Haan, whose father Sidney founded Saga in 1948, took over the business in 1984 before selling it to a management buyout team funded by the private equity group Charterhouse.

The company said it had considered other options to improve its balance sheet and added: “In determining to proceed with this capital raising and place the company on a stronger financial footing, the board considered a number of options and also recently evaluated and rejected an unsolicited and highly conditional 33p indicative approach for the company from a consortium of two US financial investors.

“This 33p offer followed several earlier indicative approaches from the consortium which commenced at a significantly lower valuation. The investors have since confirmed that they are no longer considering an offer for the company.”

MoreSaga expands Covid-19 travel insurance cover

Saga reveals £44m refund payouts

Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.