Angry small shareholders criticise Saga’s plans 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
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.