AA scraps trading update as bidders circle
By Sean Farrell
Date: Friday 07 Aug 2020
(Sharecast News) - AA has scrapped a planned trading update after revealing it was in talks with potential bidders for the company.
The vehicle breakdown company revealed on Tuesday it had received three approaches from potential private equity bidders and that it was exploring other options to cut its debt.
AA was due to publish a trading statement on 11 August ahead of its first-half results but it said on Friday it would not do so. The company's shares rose 2.6% to 29.45p at 12:31 BST.
"In the circumstances, the board has decided not to publish the pre-close trading update that was previously scheduled to be released on 11 August 2020," AA said.
The company has been approached by Centerbridge Partners and TowerBrook Capital Partners working together, Platinum Equity Advisors and Warburg Pincus about potential cash offers for all of its share capital. It said on Tuesday that each of the potential bidders had indicated they would supply large amounts of equity capital to reduce debt.
One potential bidder had suggested an offer of 40p a share, valuing AA's equity at about £250m and the company at £2.9bn including its £2.65bn debt, The Times reported.
AA said it expected to publish its first-half results on 29 September as planned.
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