(Alliance News) - AA PLC on Wednesday said it received a firm takeover offer from a consortium of TowerBrook funds and Warburg Pincus funds that values the roadside rescue firm at GBP219 million.
On Monday, AA confirmed it had received a non-binding takeover offer from TowerBrook Capital Partners and Warburg Pincus International. The consortium made a 35p cash approach and had until 1700 GMT on Tuesday to either announce a firm intention to make an offer, or walk away. AA then secured an extension, giving the consortium until 1700 GMT on Wednesday to make a firm offer.
The purchase price represents a premium of 40% to AA's closing price on August 3, the last day before the offer period began.
"Having carefully considered the range of options available to the AA including the terms of the proposed acquisition by the consortium, the AA board has concluded that the acquisition, which offers certain cash value to the AA's shareholders as well as a significant equity injection to reduce indebtedness, is in the best interests of the AA, its shareholders and wider stakeholders, and as such is unanimously recommending the acquisition to shareholders," said AA Chair John Leach.
Shares in AA were up 6.9% at 34.00 pence in London on Wednesday at midday.
By Zoe Wickens; zoewickens@alliancenews.com
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