The AA is poised for a £1.4billion stock market flotation that will see control of the UK’s biggest roadside recovery firm pass to a group of City investors.

To send a link to this page to a friend, you must be logged in.

The business, founded in 1905, is currently owned by Acromas Holdings, the private equity-backed firm behind the recent sale of shares in over-50s holidays and insurance company Saga.

Unlike the flotation of Saga, which involved retail investors, Acromas has secured the backing of City institutions including Aviva, Blackrock and Invesco to buy shares worth at least £930million as part of a management buy-in fronted by former Green Flag boss Bob Mackenzie as executive chairman.

Trading in AA shares is expected to commence later this month and to value the company at £1.38billion.

As part of the offer, the company will issue £210m of new shares, with the proceeds going towards a drive to cut the AA’s borrowings which currently stand at around £3bn. Acromas will retain a shareholding of around 31%.

Mr Mackenzie said: “The AA is a very successful organisation with a strong record of serving its members and the needs of the UK motorist. We believe there are significant opportunities to grow the business.”

0 comments

Comments

Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files
Comments

Please log in to leave a comment and share your views with other East Anglian Daily Times visitors.


We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by East Anglian Daily Times staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Forgotten your password?


Not a member yet?

Register to create your own unique East Anglian Daily Times account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

ADVERTISEMENT

ADVERTISEMENT

loading...

ADVERTISEMENT

ADVERTISEMENT