Roadrunner

12 June 2014 By Robert Cole

The British roadside recovery firm is floating at an enterprise value of 4.3 bln stg. Buyers could get a bargain, but they need to be comfortable with life in the fast lane. Private equity sellers have left the AA towing abnormally large debt.

This content is for Subscribers only

Context News

The AA, a British roadside breakdown service also known as the Automobile Association, is planning a London listing of shares.

It has presold 930 million pounds of equity to 10 so-called “cornerstone” investors at 250 pence per share.

Current owners - a consortium of private equity investors including Charterhouse Capital Partners, CVC Capital Partners and Permira Advisers - have agreed to sell another 400 million pounds of shares if buyers can be found. The consortium may end up selling 100 percent of the equity in the AA.

The business will float with about 2.9 billion pounds of debt.

Email a friend

Please complete the form below.

Required fields *