Bloomberg News

Saga Seeks 2.5 Billion-Pound Market Capitalization in London IPO

May 08, 2014

Saga Plc, which provides insurance and holidays to Britain’s over-50s, will seek a market value of as much as 2.5 billion pounds ($4.2 billion) when it sells shares in its initial public offering.

The shares will be offered to investors for 185 pence to 245 pence apiece, Folkestone, England-based Saga said in a statement today. Charterhouse Capital Partners LLP, CVC Capital Partners Ltd. and Permira Advisers LLP, which have owned Saga since 2007, will sell stakes in the IPO.

Saga, which will raise 500 million pounds in the sale to reduce debt to 700 million pounds, is among a slew of companies attempting to go public as growth returns to Europe’s economy and stock indexes rebound. Companies have raised $24 billion in IPOs in the region this year, more than three times the amount they amassed in the year-earlier period, according to data compiled by Bloomberg.

Money managers can order the shares until May 22, and the stock will begin trading on the London Stock Exchange the next day. Between 25 percent and 50 percent of the company will be publicly traded after the sale.

Charterhouse first acquired Saga from its founding family in 2004 in a deal that valued the company at about 1.35 billion pounds. Three years later, Saga was combined with Automobile Association Ltd., owned by CVC and Permira, in a 6.2 billion-pound deal. That merger was reversed last year in preparation for a sale. The buyout firms still own the AA.

Citigroup Inc. (C:US), Bank of America Corp., Credit Suisse Group AG, Goldman Sachs Group Inc., JPMorgan Cazenove and UBS AG are managing the share sale, along with Investec Bank Plc and Mizuho International Plc, Saga said.

To contact the reporter on this story: Ruth David in London at rdavid9@bloomberg.net

To contact the editors responsible for this story: Jacqueline Simmons at jackiem@bloomberg.net Edward Evans, Steve Bailey


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