Saga News Update: Moves To Enter The Stock Market Made
Saga news update: It appears that the old-age-pensioners’ favourite cruise and pension supply company are looking to enter the world of the stock market.
Saga supply more than 2.7 million customers with everything they could ever need, from holiday opportunities to pension schemes and now they are looking to move into the cut throat world of the stock market.
Acromas was established in 2007 when Saga and the AA were merged but the move that will most likely be made in early 2014, sees three companies looking for guidance of the financial variety in order to establish a £3billion flotation of Saga and the ultimate separation of Acromas.
There is a whole host of expectation around this move some of which includes the likely sale of the AA following this float; OceanBridge, an investment company, have already offered an undisclosed sum for the company.
Saga’s main focus has always been, and hopefully always will be, the customers that they serve on a daily basis. The concern that is being posed by many reflects that of history – that the company will transfer their allegiance and serve the shareholders as opposed to the customers.
The company that has established itself over the past decade has found itself bogged down by the £4.6billion worth of debt that continues to linger after the merger between Saga and the AA, this is even after Acromas looked at a total financial restructure in the summer of 2013. This helped Saga in the sense that they restructured and left a large amount of the debt with the AA, extended their repayment dates and left themselves with a smaller but by no stretch of the imagination small, £1.5billion of debt.
There has been some controversy surrounding Saga’s attitude towards the older generation of late however as their treatment of customers has come under scrutiny. It was suggested that the presence of the AA would benefit Saga’s customers but when Which? published their list of influential consumer groups, Saga were nowhere to be seen.
This flotation may be a point at which Saga can evaluate their company-customer relationships and perhaps alter their attitude accordingly. The older generation is their demographic and if they do not tailor their business conduct in order to accommodate this, they will fall hard and fast as customer choose to use other companies in favour of a greater level of service.
More information on Saga can be found here: http://www.customerservicescontact.co.uk/saga-contact-number/
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