(Alliance News) - Neither Platinum Equity Advisors LLC nor Centerbridge Partners Europe LLP intend to make a takeover offer for roadside rescue and car insurance provider AA PLC, the two said in separate statements on Wednesday.
Both private equity firms said talks between them and AA were terminated "by mutual agreement".
In early August, AA confirmed that several parties had made takeover proposals. Each of the three parties had until September 1 to lodge a firm intention to buy AA or make it known it was no longer interested in pursing a deal. The date was then extended to September 29.
The three parties were Centerbridge Partners and TowerBrook Capital Partners UK LLP, acting jointly, and Platinum Equity Advisors and Warburg Pincus International LLC, acting individually. However, Centerbridge Partners on Wednesday confirmed that TowerBrook Capital is continuing to mull making an offer for AA.
AA made no comment on Wednesday about the withdrawal of Platinum Equity and Centerbridge. Warburg Pincus made no announcement either.
Back in August, AA said debt reduction was a key priority for the company. AA has net debt of GBP2.65 billion, of which GBP913 million is scheduled to fall due for repayment within the next two years.
Chair John Leach said at the time: "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."
AA shares were down 13% in London on Wednesday at 29.45 pence. The stock has halved in value in the year so far.
By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
