If it's your way rather than the location that really matters, then saga is living up to its name. the united kingdom insurer and travel team plans to issue 150m in new equity to shore up finances after demand for its tours and cruises collapsed as a result of the pandemic. old hand roger de haan, just who offered tale in 2004, is scheduled to create a return as chairman. he will also add to 100m regarding the brand new resources.
The trip for investors has been nearly one of the ways thus far. saga, which centers on older customers, detailed with a market value close to 2bn in 2014. which had shrunk to simply 150m before tuesdays development of a brand new equity raise. shareholders have to decide whether to contribute to a rights problem or take higher dilution. neither tend to be attractive. but both options look a lot better than the prospective bid from personal equity that has been early in the day dismissed because of the board.
The brand new funds will likely to be always lower net debts of 600m and coast up exchangeability. underneath the terms revealed, sir roger will contribute 61m at 27p per share included in a company inserting. he can additionally add another 15m at a cost determined by present shareholders but capped at no more than 15p per share. sir roger will possibly add another 25m included in the available offer, once again capped at 15p per share. the remaining 50m is anticipated ahead from present investors.
The size of sir rogers post-raise stake is determined by the cost shareholders choose. during the optimum 15p per share he will get 24 per cent, assuming his full take-up. at a lowered cost of 10p per share, sir rogers stake increases to 26 per cent. regardless, he will emerge through the price as the clear champion. after adjusting for rising prices the cost is about one-fifth of exactly what he sold tale for in 2004. realising price for existing shareholders would be an epic journey all a unique.
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