Business

Ex-Saga Boss to return as part of £150m equity raise

Ex-Saga boss Sir Roger De Haan is set to return to the over-50s specialist insurer as part of a £150m equity raise.

The equity raise, which is intended to be launched on or around 10 September, will see De Haan invest up to £100m of his own money in a share placing for a near-20% stake of the business.

He will also replace non-executive chairman Patrick O’Sullivan, who has volunteered to step down from his role in order to facilitate the deal.

Said said the raise will see a firm placing of 224m new ordinary shares representing 20% of the current issued share capital of the company, to be issued at 27p per share, a 98% premium to the 13.61p closing price of Saga shares on 28 August 2020.

It said this would contribute £60.6m of the proposed £150m capital raise. It added it will be looking to raise the remaining £50m from existing investors.

De Haan is expected to serve a term of three years, subject to annual re-election by
Shareholders. He previously owned Saga prior to the sale of the company to private equity group Charterhouse in 2004.

He was chief executive and chairman of Saga for 20 years prior to the sale.

Saga said: The board unanimously considers that the Proposed Equity Raise will support the execution of its reinvigorated strategy under its strengthened management team, which it believes will return Saga to sustainable growth and lead to the restoration of significant shareholder value.”

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