Brief: Ageas UK In Exclusive Negotiations Over 20-Year Partnership With Saga Services Limited

Saga

11/10/2024 07:11

Oct 11 (Reuters) - Ageas SA  AGES.BR :
    * ANNOUNCES EXCLUSIVE NEGOTIATIONS TO STRENGTHEN ITS
PARTNERSHIP
WITH UK OVER 50S SPECIALIST SAGA
    * AGEAS WOULD ALSO ACQUIRE SAGA'S INSURANCE UNDERWRITING
BUSINESS,
AICL
    * 20-YEAR PARTNERSHIP
    * AGEAS UK WOULD ENTER INTO A 20-YEAR AFFINITY PARTNERSHIP
WITH
SSL, SAGA’S INSURANCE BROKING BUSINESS
    * PROPOSED TRANSACTION REPRESENTS A TOTAL CASH PAYMENT OF
GBP
147.5 MILLION
    * BASED ON INITIAL CONSIDERATION AND INCLUDING CAPITAL
SYNERGIES,
ESTIMATED IMPACT ON AGEAS GROUP SOLVENCY IS - 5%
    * PROPOSED TRANSACTION WILL NOT AFFECT THE GROUP’S CURRENT
SHARE
BUYBACK PROGRAMME
    * AGEAS UK WOULD ACQUIRE AICL FOR A TOTAL CONSIDERATION OF
GBP
67.5 MILLION
    * COMPLETION OF THE AICL TRANSACTION IS TARGETED IN Q2 2025
    * POTENTIAL ADDITIONAL CONTINGENT CONSIDERATION OF UP TO GBP
60
MILLION
    * AFFINITY PARTNERSHIP WOULD BE FOR A 20-YEAR TERM, WITH
AMBITION
TO 'GO LIVE' BY END OF 2025
    * AGEAS UK WOULD PAY SAGA AN UPFRONT CONSIDERATION OF GBP 80
MILLION PAYABLE
    * SAGA MAY RECEIVE CONTINGENT CONSIDERATION OF UP TO GBP 30
MILLION IN 2026 AND UP TO GBP 30 MILLION IN 2032
    * UPFRONT CONSIDERATION PAYABLE AT OR AROUND THE ‘GO LIVE’
DATE

Source text for Workspace:  ID:nGNE751fZ3 
Further company coverage:  AGES.BR 

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