The roadside recovery firm the AA are in takeover talks with three parties which could see the company being taken back into private ownership.
The AA have received approaches from Platinum Equity Advisors, Warburg Pincus International, and a joint bid from Centerbridge Partners Europe and TowerBrook Capital Partners, all trying to snap up the motoring business.
The breakdown specialist said that all of the interested parties indicated that any offer would see a “significant amount” of money that would go into the company cutting debts.
Share in the company surged by 13.6% to 28.4p over the potential suitors would reduce the £2.6bn debt.
John Leach, chairman of the AA said, “Following a significant improvement in the underlying performance of the business over the course of the last few years under Simon’s (Breakwell) leadership, the board has been proactively considering a range of potential refinancing options from a position of relative strength and ahead of its upcoming debt maturities in 2022.
“The AA is a high-quality and robust business, with an iconic brand, a resilient business model and a highly committed and loyal workforce.
“However, in order for us to be able to achieve our full potential, the board believes that it must now prioritise reducing the group’s indebtedness to provide the business with the right long-term capital structure – which we hope the current refinancing process will achieve.”