Saga, the London-listed monetary providers and journey supplier for over-50s shoppers, is in detailed talks with one in every of Europe’s largest insurers a couple of deal that can permit it to repay a piece of its big debt pile.
Metropolis sources mentioned on Tuesday night that Saga and Ageas had been assured of concluding a deal within the close to future, though they cautioned {that a} remaining settlement had but to be reached.
Below the deal, Ageas – which deserted a takeover of Direct Line in March – would make an up-front fee to Saga, with a sequence of subsequent fee funds, in return for taking up the working of components of the British firm’s insurance coverage operations.
The scale of these funds was unclear on Tuesday.
For Saga, the transaction with Ageas would allow it to pay down debt and shift to a brand new working mannequin aimed toward relieving a few of the stress on its stability sheet.
Saga was because of announce its half-year outcomes on Wednesday, however on Tuesday afternoon mentioned these can be delayed.
“Saga plc continues to explore partnership opportunities to support the group’s capital-light growth ambitions, crystallise value and enhance long-term returns for shareholders,” it mentioned.
“Whereas this course of stays ongoing, the group at the moment broadcasts that it’s delaying its half-year outcomes, which had been because of be printed on 2 October 2024.
“The results will be announced at the earliest possible opportunity.
“Saga confirms that efficiency for the primary half is in keeping with expectations and the group stays on monitor for the complete 12 months.”
The talks with Ageas should not the primary time that Saga has explored a transaction involving its insurance coverage enterprise.
In February final 12 months, it held talks with Open, an Australian firm, a couple of sale of the division however the talks fell aside.
Saga, which has been labouring below the burden of a big debt pile for years, can be in discussions a couple of related partnership mannequin for its cruises division, though these are understood to not be fairly so superior.
Final 12 months it tapped its chairman, Roger de Haan, for a £35m mortgage, including to the substantial sum of cash it owes him.
The corporate’s shares have fallen by practically 10% over the last 12 months, leaving it with a market capitalisation of simply over £155m.
Mr de Haan, the corporate’s former chief government, was parachuted again in to steer a turnaround in the summertime of 2020, investing £100m as a part of a broader capital-raising.
That got here after it spurned a takeover bid for the entire firm from personal fairness traders.
In the beginning of final 12 months, it unveiled a worldwide web site referred to as Saga Distinctive, aimed toward offering recommendation and providers to over-50s shoppers.
Shares in Saga closed on Tuesday at 112.6p.
Ageas and Saga declined to remark.
