Saga launches £150m capital raise

Saga, a UK-based specialist insurer for life after 50, plans to raise £150 million in new capital to strengthen its balance sheet and improve liquidity.

The capital raise is supported by a strategic £100 million investment by Sir Roger De Haan, the company's former chief executive officer.

Saga said September 10, 2020 that it has completed the bookbuild process for the conditional placing and has raised gross proceeds of approximately £74.8 million.

The company has conditionally placed 623,335,182 new Shares at a price of 12 pence per share with certain shareholders, De Haan and institutional investors.

De Haan will subscribe for 124,183,026 new shares at the offer price in accordance with the subscription agreement.

The new shares will represent approximately 29.8 percent of the company's issued share capital following admission.

The new shares conditionally placed with investors other than De Haan will be clawed back on a pro rata basis first, and only when these new shares have been clawed back in full will the new shares conditionally placed to De Haan be clawed back.

Depending on the extent of clawback, De Haan's shareholding in the company following completion of the capital raising will be between approximately 16.6 percent and 26.4 percent.