(Alliance News) - Saga PLC on Sunday said it plans to raise GBP150 million through the issue of shares, adding that former chief executive & chair Roger De Haan plans to invest up to GBP100 million as part of the fundraise.
Shares in the holiday and insurance provider closed 1.8% lower at 13.61 pence each on Friday in London.
Saga said it plans to launch a GBP150 million equity raise on or around next Thursday, comprising a placing and open offer.
The Kent-based company added that de Haan plans to make his investment through the placing of 224 million new shares - around 20% of the company's issued share capital - at 27p each, totalling GBP60.6 million. The share price represents a 98% premium to the Friday closing price.
De Haan will also participate in a further placing, raising GBP14.9 million through the purchase of shares at the same price.
He will also participate as a conditional placee for shares representing GBP24.5 million of the placing and open offer - expected to raise GBP74.5 million - subject to a maximum issue price of 15p per share.
Alongside his investment, de Haan will rejoin the company in the role of non-executive chair, taking over from Patrick O'Sullivan upon completion of the fundraise. He will remain in the role for three years subject to an annual re-elction by shareholders.
Saga said the new cash raised will be used to strengthen the its financial position against the
backdrop of the Covid-19 outbreak and the ongoing suspension of travel and to better position the company for longer-term recovery and growth.
By Ife Taiwo; ifetaiwo@alliancenews.com
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Saga (SAGA)