Proactive Investors - Saga PLC (LON:SAGA) said it is in talks with Belgian insurance giant Ageas (LON:0Q99) about a potential partnership for its insurance business.
A short statement was released this morning that it said was in response to recent media coverage.
The specialist in financial services and travel provider for over-50s was reported by Sky News overnight as having entered the talks about a deal "that will allow it to repay a chunk of its huge debt pile".
Group net debt was last revealed to be £637.2 million at its 31 January year-end, up 10% on the year before.
A deal was close to being struck, the report said, with Ageas potentially making an up-front payment to Saga to take over the running of its insurance arm, with regular commission payments to follow.
Ageas was most recently in UK investors's attention after it approached Direct Line (LON:DLGD) before deciding in March that it will not make a takeover offer.
Saga said there is "no certainty" of a partnership agreement being struck and it will keep the market updated on developments.
Yesterday the FTSE 250-listed group delayed the publication of its half-year results, which were due to be published today.
Saga said it "continues to explore partnership opportunities to support the group's capital-light growth ambitions, crystallise value and enhance long-term returns for shareholders".