Saga's share price slumps after its largest shareholder sells 13 per cent stake

 
James Nickerson
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Europe's Growing Elderly Population
Sage specialises in services for customers over the age of 50 (Source: Getty)

Saga's share price flopped in mid morning trading after it was announced its largest shareholder was selling a stake in the company.

Stock in Saga sank 5.28 per cent to 201.05p per share, making it the second biggest faller on the FTSE, behind Moneysupermarket, which fell 6.88 per cent.

Shares in Saga dropped after Acromas Bid said it had sold a 13 per cent stake in the UK insurer in a placing run by Bank of America Merrill Lynch and JPMorgan Cazenove.

Read more: Saga share sale increased after demand grows

Acromas shold 145m shares at 200p per share, more than the 112m that it was originally expected that it would sell.

Following the transaction, Acromas will hold around 32 per cent in Saga, and had already sold six per cent in February, 11 per cent in May and six per cent in July.

Read more: Saga investors rewarded with 4.1p dividend

The news comes after Saga yesterday announced the sale of Allied Healthcare to Aurelius Group, a pan-European investor.

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