When it is the journey rather than the location that matters, then saga is living to its name. the united kingdom insurer and vacation team intends to issue 150m in brand new equity to shore up finances after demand for its tours and cruises collapsed due to the pandemic. old hand roger de haan, who marketed tale in 2004, is defined to make a return as president. he can also add up to 100m of brand-new funds.
The trip for shareholders has-been literally one way so far. tale, which targets older customers, detailed with market value near 2bn in 2014. that had shrunk to just 150m just before tuesdays news of a unique equity raise. shareholders are in possession of to choose whether or not to donate to a rights issue or take better dilution. neither tend to be appealing. but both choices look better than the potential bid from exclusive equity that has been early in the day dismissed by the board.
The new resources will likely be regularly decrease web debts of 600m and coast up exchangeability. in terms revealed, sir roger will contribute 61m at 27p per share as an element of a strong inserting. he'll also contribute an additional 15m at a cost based on present investors but capped at no more than 15p per share. sir roger will potentially contribute another 25m as part of the open offer, again capped at 15p per share. the remaining 50m is expected to come from current investors.
How big sir rogers post-raise share depends on the cost shareholders settle on. on optimum 15p per share he will obtain 24 percent, assuming their full take-up. at a diminished cost of 10p per share, sir rogers stake increases to 26 %. either way, he can emerge from the bargain because the obvious champion. after adjusting for inflation the purchase price is approximately one-fifth of just what he sold saga for in 2004. realising value for current shareholders may be an epic journey all a unique.
Our preferred newsletter for advanced members most readily useful of lex is published two times weekly. please register here