Saga, the London-listed monetary providers and journey supplier for over-50s customers, is in detailed talks with considered one of Europe’s greatest insurers a couple of deal that may enable it to repay a piece of its large debt pile.
Sky Information has learnt that Saga is in unique negotiations with Ageas, a Belgian insurer which tried to purchase Direct Line Group earlier this yr, a couple of long-term partnership association for its insurance coverage division.
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.
Beneath 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 on the operating of elements 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 among the stress on its stability sheet.
Saga was as a consequence 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 right this moment proclaims that it’s delaying its half-year outcomes, which had been as a consequence of be revealed on 2 October 2024.
“The outcomes will probably be introduced on the earliest attainable alternative.
“Saga confirms that performance for the first half is in line with expectations and the group remains on track for the full year.”
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The talks with Ageas are usually not the primary time that Saga has explored a transaction involving its insurance coverage enterprise.
In February final yr, 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 beneath the burden of a big debt pile for years, can be in discussions a couple of comparable partnership mannequin for its cruises division, though these are understood to not be fairly so superior.
Final yr 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 past 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 guide 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 yr, it unveiled a worldwide web site referred to as Saga Distinctive, aimed toward offering recommendation and providers to over-50s customers.
Shares in Saga closed on Tuesday at 112.6p.
Ageas and Saga declined to remark.
