American investment management firm Elliott has acquired a 5 percent stake in Saga, the UK-based group providing travel, financial and insurance services.
Specifically, Elliott has taken 5.141 percent ownership in Saga, the British company said in a stock exchange filing on July 17.
Saga, which specializes in products and services for life after 50, had experienced increasing challenges from the commoditization of markets in which it operates, especially in insurance. In it preliminary results in April, the company said that it expected a lower underlying profit before tax for the 2019/2020 financial year.
Last month, Lance Batchelor, Saga’s CEO announced he would retire at the end of the current financial year in January 2020, after six years with the group. Saga is now seeking a new CEO.
As part of its strategy, Saga is putting a greater emphasis on its cruise business, Saga Cruises. The group aims to become a specialized operator focusing on cruise and differentiated experiences in tour operations.
In June 2019, the company took delivery of its new ship, Spirit of Discovery, in Germany. The newbuild was named in Dover on July 5, embarking on an inaugural voyage a few days later.
Saga’s second new ship, Spirit of Adventure, is due to be delivered in summer 2020.
The Spirit of Discovery and the Spirit of Adventure are to replace the existing two ships, Saga Pearl II and the Saga Saphire that are planned to be sold.