Saga boosted as former boss makes investment

Shares in Saga jumped yesterday after the company confirmed reports that its former boss was returning, and bringing a £100 million investment to boot.

It came after the insurance and travel comp any over the weekend said that former chief executive, chairman and owner Sir Roger De Haan would return to the businesses as non-executive chair.

He will also be pouring £100m into the firm, in a bid to stabilise its finances, as part of a£150m equity raise.

Around £60 mofh is investment will be invested in shares which he will buy at 27p each, a big increase on Friday’s closing price.

Hargreaves L ans down analyst William Ryder said that it was unsurprising that Saga needed extra cash.

“In some ways, it would be hard to design a company more susceptible to a pandemic than the group’s travel operations–and Saga didn’t star t the year in the best of health. The new money will dilute current shareholders, but we doubt there are too many long-term investors left.”