AIM IP specialist Tekcapital to sell or float all four portfolio companies 'within 2 years'. Watch the full video here

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksAA Share News (AA.)

  • There is currently no data for AA.

Watchlists are a member only feature

Login to your account

RNS Alerts are a premium feature

Login to your account

myTerminal is a premium feature

Login to your account

Don't have an account? Click here to register.

AA Confirms Takeover Approaches; Evaluates Equity Issue To Cut Debt

Tue, 4th Aug 2020 11:33

(Alliance News) - AA PLC on Tuesday confirmed that several parties have made takeover offers, while the roadside assistance provider also is evaluating a range of refinancing options, including a share sale.

AA, which also provides motor insurance and driving lessons, said it currently in talks with several parties in relation to a wide range of potential refinancing options and, as part of discussions, three parties have made separate cash bids for the company.

The three parties are Centerbridge Partners Europe LLP and TowerBrook Capital Partners UK LLP, acting jointly, plus Platinum Equity Advisors LLC and Warburg Pincus International LLC individually.

The Times newspaper on Tuesday reported that one of the bidders had potentially made an offer of 40 pence a share, equating to a market value of about GBP250 million, or about GBP2.9 billion including GBP2.65 billion of debt.

Shares in AA were trading 14% higher at 28.40p each in London on Tuesday morning, valuing the company at GBP176.5 million.

"The potential offerors have each indicated that any possible offer would involve a significant amount of new equity capital being injected into the group, in order to reduce indebtedness following completion. There can be no certainty that any offer will be made for the company, nor as to the terms on which any offer might be made," AA said, without giving further details.

The company has a net debt of GBP2.65 billion, of which GBP913 million is scheduled to fall due for repayment within the next two years.

Debt reduction is a key priority, AA said, and the company continues to focus on its capital structure and on reducing indebtedness.

Chair John Leach said: "The AA is a high-quality and robust business, with an iconic brand, a resilient business model and a highly committed and loyal workforce. However, in order for us to be able to achieve our full potential, the board believes that it must now prioritise reducing the group's indebtedness to provide the business with the right long-term capital structure - which we hope the current refinancing process will achieve."

By Tapan Panchal; tapanpanchal@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

More News

IN BRIEF: AA takeover becomes effective, shares to cease trading

IN BRIEF: AA takeover becomes effective, shares to cease trading

9 Mar 21 14:07

IN BRIEF: AA's GBP219 million takeover sanctioned by court

IN BRIEF: AA's GBP219 million takeover sanctioned by court

8 Mar 21 21:14

LONDON TRADING UPDATES: Motif Bio Says Orange Avenue Buys Subsidiary

LONDON TRADING UPDATES: Motif Bio Says Orange Avenue Buys Subsidiary

26 Feb 21 20:20

IN BRIEF: AA Prices GBP280 Million 2050 Notes At 6.5%

IN BRIEF: AA Prices GBP280 Million 2050 Notes At 6.5%

20 Jan 21 17:14

AA Plans GBP280 Million Bond Offer To Pay Off Class B2 Notes

AA Plans GBP280 Million Bond Offer To Pay Off Class B2 Notes

18 Jan 21 10:00

IN BRIEF: AA Shareholders Green Light GBP219 Million Takeover

IN BRIEF: AA Shareholders Green Light GBP219 Million Takeover

14 Jan 21 15:53

AA Takeover By TowerBrook And Warburg Gets More Shareholder Backing

AA Takeover By TowerBrook And Warburg Gets More Shareholder Backing

11 Jan 21 10:10

UK Shareholder Meetings Calendar - Next 7 Days

UK Shareholder Meetings Calendar - Next 7 Days

7 Jan 21 16:07

UK EXECUTIVE CHANGE SUMMARY: McBride Hires Former AA Exec As New CFO

UK EXECUTIVE CHANGE SUMMARY: McBride Hires Former AA Exec As New CFO

11 Dec 20 15:15

UK BROKER RATINGS SUMMARY: Goldman Sachs Raises easyJet, Cuts Wizz Air

UK BROKER RATINGS SUMMARY: Goldman Sachs Raises easyJet, Cuts Wizz Air

1 Dec 20 09:34

LONDON MARKET CLOSE: UK Spending Review And US Data Fail To Rouse FTSE

LONDON MARKET CLOSE: UK Spending Review And US Data Fail To Rouse FTSE

25 Nov 20 17:02

AA Agrees To Firm Takeover Offer From TowerBrook And Warburg Pincus

AA Agrees To Firm Takeover Offer From TowerBrook And Warburg Pincus

25 Nov 20 12:05

UK WINNERS & LOSERS SUMMARY: GoCo Up, Future Down After Takeover Offer

UK WINNERS & LOSERS SUMMARY: GoCo Up, Future Down After Takeover Offer

25 Nov 20 10:44

LONDON MARKET OPEN: Rally Extends Ahead Of Sunak's UK Spending Review

LONDON MARKET OPEN: Rally Extends Ahead Of Sunak's UK Spending Review

25 Nov 20 09:00

AA agrees £219m sale to private equity firms

(Sharecast News) - AA has agreed to be bought for £219m by two private equity firms in an ignominious end to the breakdown service's six years as a public company.

25 Nov 20 08:39

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.