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Travel: City investors to take control of AA under flotation plan

16:13 06 June 2014

The AA is poised for a stock market flotation.

The AA is poised for a stock market flotation.

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.

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.”

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Undated handout photo issued by John Lewis of Paula Nickolds who has been appointed as their new managing director, becoming the first woman in the role in the department store chain's 152-year history. PRESS ASSOCIATION Photo. Issue date: Tuesday October 25, 2016. Ms Nickolds has been promoted from her current role as commercial director and replaces long-serving boss Andy Street, who stepped down after joining the West Midlands mayoral race on a Conservative Party ticket. See PA story CITY JohnLewis. Photo credit should read: Greg Funnell/PA Wire

NOTE TO EDITORS: This handout photo may only be used in for editorial reporting purposes for the contemporaneous illustration of events, things or the people in the image or facts mentioned in the caption. Reuse of the picture may require further permission from the copyright holder.

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