Business
Statement re equity raise and strategic investment
Statement re equity raise and strategic investment.
About this update from Saga Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5408X\n SAGA PLC\n 01 September 2020\n \n \n \n NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION\n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n \n FOR IMMEDIATE RELEASE\n 30 August 2020\n \n Statement regarding prospective £150m equity raise\n and strategic investment by Sir Roger De Haan\n Saga plc (\"Saga\" or the \"Company\") notes recent media speculation and today announces that it is at the advanced stage of a prospective £150 million equity capital raise (the \"Proposed Equity Raise\") in order to strengthen its balance sheet, improve liquidity and support the execution of its reinvigorated strategy under its strengthened management team. As such, the Company confirms the Proposed Equity Raise, which would be subject to shareholder approval, would comprise:\n \n ·\n Prospective £150m equity raise intended to be launched on or around 10 September with the Company's interim results announcement, structured as a firm placing and a placing and open offer. \n \n \n ·\n Sir Roger De Haan intends to invest, subject to final documentation, up to £100m in the Proposed Equity Raise. It is expected that Sir Roger will make his investment through:\n \n \n o \n 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, reflecting his belief in the underlying strength of the Saga brand and business and his confidence in the new strategy under the strengthened management team. This would contribute £60.6m of the proposed £150m capital raise;\n \n \n o \n a further firm placing, raising £14.9m on the same pricing and terms as will apply to Saga shareholders subject to a maximum issue price of 15p per share; and \n \n \n o \n participating as a conditional placee for shares representing £24.5m of the placing and open offer (expected to raise total proceeds of £74.5m), also subject to a maximum issue price of 15p per share, subject to clawback by Saga shareholders in the open offer.\n \n \n · \n Alongside his investment, Sir Roger would join the Board and become Non-Executive Cha...