AA granted 24-hour extension to their £218m takeover talks

by

AA granted 24-hour extension to their £218m takeover talks with two private equity firms

By Daily Mail City & Finance Reporter

Published: | Updated:

Takeover move: AA is in talks with private equity firms Towerbrook Capital Partners and Warburg Pincus

The AA was last night set to return to private ownership after agreeing to a £218million takeover.

The breakdown company hammered out a 35p-per-share deal with private equity firms Towerbrook Capital Partners and Warburg Pincus after they were granted a 24-hour extension to conclude their talks.

It marks a return to private equity ownership for the AA, which was bought by Permira and CVC in 2004 before being floated on the stock exchange in 2014. 

Towerbrook and Warburg Pincus revealed their interest in August, and the takeover deadline under City rules was extended repeatedly as the parties tried to thrash out a deal.

Their agreement came hours after the AA said it would be willing to recommend a £218million offer made by the two private equity firms to shareholders.

The 35p-per-share price is an 86 per cent cut to the company’s 250p price when it floated in 2014. 

The new owners will also pump £380million in to tackle its crippling £2.7billion debt pile.

Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.