Overcast

Overcast

max temp: 10°C

min temp: 7°C

Search

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.”

Search hundreds of local jobs at Jobs24

0 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.

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

Britain’s property market will be in sharp focus next week as two of the biggest housebuilders post annual figures after a solid year for the sector, despite a Brexit vote blip.

Ipswich’s first drive-through Starbucks has opened with a special ribbon-cutting ceremony by mayor Roger Fern.

The new owner of a Suffolk pub previously in the hands of celebrity chef Marco Pierre White wants to put the community back at the heart of the business.

Retail entrepreneur James Timpson, whose family business has a record of working successfully with offenders, is to share his knowledge of prison reform at an event being held to raise money for the Ipswich-based charity Ormiston Families.

Organisers have announced the latest date for a business charity running event that has raised over a half a million pounds for good causes over the years.

Management Jobs

Show Job Lists

Most read

Most commented

Topic pages

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24