AA mulls all-cash offer from former rivals Towerbrook and Warburg Pincus
The AA is today in talks about a possible all-cash offer from a consortium made up of private equity firms Towerbrook Capital Partners and Warburg Pincus.
Shares are up three per cent on the news.
The roadside recovery service also confirmed talks with Centerbridge Partners Europe and Platinum Equity Advisors had broken down, as was mooted earlier this week.
The AA, famed for its yellow recovery vehicles, looks set to return to private equity hands after being floated in London in 2014.
But the small-cap firm’s share price has slumped in recent years, amid concerns about the size of its debt pile.
Its current market value is £175m.
“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,” AA said
Its board will keep talking to other investors over a range of alternative potential refinancing options, including the possibility of raising new equity, it added.
AA said earlier this month it had been granted an extension by regulators for potential offers until 29 September.