AA rallies as Apollo said to mull £3bn bid
AA shares rallied on Monday following a report that US investment firm Apollo Global Management is considering a £3bn takeover bid for the roadside assistance company and insurer.
AA
n/a
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Automobiles & Parts
1,232.61
14:29 25/04/24
FTSE All-Share
4,377.18
14:30 25/04/24
FTSE Small Cap
6,424.57
14:30 25/04/24
According to Sky News, Apollo has joined a trio of rival bidders in approaching the group. Sky cited sources as saying that Apollo had informed the AA board of its interest in making an offer, although it is said to be less advanced in its work than the other private equity funds.
Last week, the AA confirmed it had received three approaches from potential private equity bidders. The company said it had 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.
Each of the potential bidders had indicated they would inject large amounts of new equity capital to reduce debt, the AA said, adding that it was also considering other options to strengthen its finances, including raising new equity.
At 0910 BST, the shares were up 13.3% at 37.23p.