10:48 am, November 24, 2020
The AA has asked for a further extension in its hope to secure a formal offer from suitors.
On Monday bosses confirmed they had received a non-binding offer of 35p a share from two private equity houses, TowerBrook Capital and Warburg Pincus.
The deadline for a ‘put up or shut up offer’ was 5pm tonight, November 24, where a binding offer must be made or the suitors must walk away.
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This has now been extended by a further 24 hours to Wednesday, November 25 at 5pm.
The AA said: ‘The company remains engaged in advanced discussions with the consortium in relation to the possible offer… There can be no certainty that any offer will be made for the company.’
If the suitors make their offer binding, it would see them invest £380m into the business to pay off high debts and loan repayments due next year.
AA bosses have said they will recommend the offer to shareholders, having announced in May that they had been reviewing ways to support the business’s high debts.
The AA said: ‘The board believes that the company needs a more sustainable capital structure and requires a significant amount of additional new equity in order to reduce the group’s indebtedness and to fund future growth.’
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