Shareholders criticise Saga plan to raise £150m lifeline

Angry small shareholders have criticised Saga’s plans to raise a £150m lifeline. 

They said the over-50s travel and insurance giant’s proposal valued the shares below a recent offer by a private equity consortium. 

That bid, led by former Aviva boss Mark Wilson, was offering 33p per share, or £375m. 

Unhappy: Small shareholders said the over-50s travel and insurance giant's proposal valued the shares below a recent offer by a private equity consortium

Unhappy: Small shareholders said the over-50s travel and insurance giant's proposal valued the shares below a recent offer by a private equity consortium

Unhappy: Small shareholders said the over-50s travel and insurance giant’s proposal valued the shares below a recent offer by a private equity consortium

It was rejected by Saga’s board, which argued it undervalued the company. But under the financing deal proposed by Saga and its former boss Sir Roger De Haan, bookrunners have placed shares at 12 pence each with some investors. Shares closed at roughly that price on Friday. 

Tom Millar, from Blackheath, south-east London, said: ‘It is an outrage. Smaller shareholders are going to get their holdings squeezed.’ Another wrote on an online forum: ‘If I hold, I am looking at a paper loss of 45 per cent’. 

Ryan Howson, 54, from Gibraltar, said: ‘The board is destroying the company’s value.’ 

Last night Saga said: ‘The proposed equity raise will strengthen the balance sheet, improve liquidity and support the execution of Saga’s reinvigorated strategy.’ A vote will be held on Friday. 

#fiveDealsWidget .dealItemTitle#mobile {display:none} #fiveDealsWidget {display:block; float:left; clear:both; max-width:636px; margin:0; padding:0; line-height:120%; font-size:12px} #fiveDealsWidget div, #fiveDealsWidget a {margin:0; padding:0; line-height:120%; text-decoration: none; font-family:Arial, Helvetica ,sans-serif} #fiveDealsWidget .widgetTitleBox {display:block; float:left; width:100%; background-color:#af1e1e; } #fiveDealsWidget .widgetTitle {color:#fff; text-transform: uppercase; font-size:18px; font-weight:bold; margin:6px 10px 4px 10px; } #fiveDealsWidget a.dealItem {float:left; display:block; width:124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;} #fiveDealsWidget a.dealItem#last {margin-right:0} #fiveDealsWidget .dealItemTitle {display:block; margin:10px 5px; color:#000; font-weight:bold} #fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img {float:left; display:block; margin:0; padding:0} #fiveDealsWidget .dealItemImage {border:1px solid #ccc} #fiveDealsWidget .dealItemImage img {width:100%; height:auto} #fiveDealsWidget .dealItemdesc {float:left; display:block; color:#004db3; font-weight:bold; margin:5px;} #fiveDealsWidget .dealItemRate {float:left; display:block; color:#000; margin:5px} #fiveDealsWidget .footerText a:hover{text-decoration: underline;} #fiveDealsWidget .footerSmall{font-size:10px; padding-top:10px;} @media (max-width: 635px) { #fiveDealsWidget a.dealItem {width:19%; margin-right:1%} #fiveDealsWidget a.dealItem#last {width:20%} } @media (max-width: 560px) { #fiveDealsWidget #desktop {display:none;} #fiveDealsWidget #mobile {display:block!important} #fiveDealsWidget a.dealItem {background-color: #fff; height:auto; min-height:auto} #fiveDealsWidget a.dealItem {border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px} #fiveDealsWidget a.dealItem#last {border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px} #fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last {width:100%} #fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage {float:left; display:inline-block} #fiveDealsWidget .dealItemImage {width:35%; margin-right:1%} #fiveDealsWidget .dealItemContent {width:63%} #fiveDealsWidget .dealItemTitle {margin: 0px 5px 5px; font-size:16px} #fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate {clear:both} }

Check Also

Nikki and Brie Bella Reveal Sons Buddy and Matteo Already Have a Special Bond

The Bella Twins’ baby boys are growing up fast. On Wednesday, Oct. 28’s all-new episode …

Leave a Reply

Your email address will not be published. Required fields are marked *

RSS
Follow by Email
Pinterest