Saga PLC (LSE:SAGA) said it is in talks with Belgian insurance giant Ageas about a potential partnership for its insurance business.
A brief statement was issued this morning in response to recent media coverage.
The specialist in financial services and travel for the over-50s was reported by Sky News overnight to have entered talks about a deal "that would allow it to repay a portion of its significant debt."
As of 31 January, the group’s net debt stood at £637.2 million, up 10% from the previous year.
According to the report, a deal is nearing completion, with Ageas potentially making an up-front payment to Saga to take over the management of its insurance division, followed by regular commission payments.
Ageas recently garnered attention from UK investors after it approached Direct Line, before deciding in March not to pursue a takeover offer.
Saga noted that there is "no certainty" a partnership agreement will be reached and promised to keep the market informed of any developments.
Yesterday, the FTSE 250-listed group postponed the release of its half-year results, which had been scheduled for today.
Saga also stated that it "continues to explore partnership opportunities to support the group's capital-light growth strategy, realise value, and enhance long-term returns for shareholders."