2nd Oct 2020 09:39
(Alliance News) - Saga PLC on Friday said its open offer received acceptances representing 44% of available shares with remaining open offer shares then placed, including with incoming chair and cornerstone investor Roger De Haan.
Shares in Saga were down 1.5% at 12.55 pence in London in morning trading.
Saga specialises in travel and insurance and services for people over 50 years old and announced a firm placing, placing, and open offer to raise approximately GBP150 million on September 10. The placing and open offer raised around GBP74.8 million, in addition to GP75.5 million of firm placing proceeds.
The company's open offer closed for acceptances on Wednesday with valid acceptances received for 271.9 million open offer shares, representing 44% of the 623.3 million shares available.
The remaining shares were placed with conditional placees, first with De Haan and then subsequently to other conditional placees in line with preferential clawback agreements.
De Haan, the cornerstone investor in the capital raise, is subscribing for 348.6 million new shares in the firm placing, plus 204.3 million placing and open offer shares. From admission, he will hold a 26% stake in Saga's enlarged share capital.
He is Saga's former chief executive officer and the son of the founder of the business. De Haan is returning to Saga as chair in order to lead a turnaround.
The firm swung to a GP55.5 million pretax loss in the first half of its financial year - the six months to July 31 - from a GBP52.6 million profit a year before. Saga's turnaround strategy aims to achieve a lower cost base and reduced debt, as well as a data, digital, and brand transformation. The GBP150 million will be used to help Saga deliver this new strategy.
The placing and open offer are conditional on shareholder approval as well as other conditions, with admission no later than October 5.
By Anna Farley; [email protected]
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