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Company News

Saga stock leaps 80% after fundraising plans, ex-boss to return as chairman

Sept 1 (Reuters) - Shares of Saga Plc jumped 80% on Tuesday after the British over-50s holidays and insurance specialist laid out plans to raise 150 million pounds ($201.08 million) and bring back former boss Roger De Haan as non-executive chairman.

The owner of Saga Holidays, Saga Cruises, Titan and Destinology had seen its stock price plummet by 74% this year by Friday’s close, as the coronavirus crisis hammered travel demand.

De Haan, who was chief executive before the company was sold in 2004 to private equity group Charterhouse, intends to invest 100 million pounds out of the 150 million pounds the company plans to raise, Saga said on Sunday.

“This is surprising but sensible move that should keep the Saga group together,” said analysts at Peel Hunt, with a “hold” rating on the stock. ($1 = 0.7460 pounds) (Reporting by Yadarisa Shabong in Bengaluru; Editing by Subhranshu Sahu)

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