Thu, 24 Sep 2020 | BUSINESS NEWS
Roadside assistance provider the AA has said it is in talks over a possible all-cash acquisition by a consortium of private equity firms Towerbrook Capital Partners and Warburg Pincus.
The company also said that talks with Centerbridge Partners Europe and Platinum Equity Advisors had ended.
AA said: “The consortium has confirmed its strong interest in pursuing a possible all-cash offer for the company, including an intention to de-lever the AA’s capital structure significantly, consistent with the company’s objectives”.
The company, which was founded in 1905 and is well-known across Britain for its yellow recovery trucks, was floated in London by its previous private equity owners in 2014. However, its share price has experienced a slump in recent years, with concerns surrounding the size of its debts. Its current market value stands at £175 million.
AA said in a statement: "Any possible offer remains subject to a number of matters including, inter alia, the completion of the consortium's due diligence and the finalisation of documentation."
"The board now intends to progress its discussions with the consortium regarding a possible offer and a further announcement will be made in due course as appropriate."
The company added that its board is in discussions with other investors regarding alternative refinancing options, such as raising new equity. AA said earlier in the month that regulators had granted it an extension until September 29 for potential offers.
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