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Saga, the London-listed financial services and travel provider for over-50s consumers, is in detailed talks with one of Europe’s biggest insurers about a deal that will allow it to repay a chunk of its huge debt pile.
Sky News has learnt that Saga is in exclusive negotiations with Ageas, a Belgian insurer which tried to buy Direct Line Group earlier this year, about a long-term partnership arrangement for its insurance division.
City sources said on Tuesday evening that Saga and Ageas were confident of concluding a deal in the near future, although they cautioned that a final agreement had yet to be reached.
Under the deal, Ageas – which abandoned a takeover of Direct Line in March – would make an up-front payment to Saga, with a series of subsequent commission payments, in return for taking over the running of parts of the British company’s insurance operations.
The size of those payments was unclear on Tuesday.
For Saga, the transaction with Ageas would enable it to pay down debt and shift to a new operating model aimed at relieving some of the pressure on its balance sheet.
Saga was due to announce its half-year results on Wednesday, but on Tuesday afternoon said these would be delayed.
“Saga plc continues to explore partnership opportunities to support the group’s capital-light growth ambitions, crystallise value and enhance long-term returns for shareholders,” it said.
“While this process remains ongoing, the group today announces that it is delaying its half-year results, which were due to be published on 2 October 2024.
“The results will be announced at the earliest possible opportunity.
“Saga confirms that performance for the first half is in line with expectations and the group remains on track for the full year.”
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