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AA in talks over bid from Towerbrook, Warburg Pincus group

LONDON (Reuters) - AA AAAA.L is in talks over a possible all-cash offer from a consortium consisting of private equity firms Towerbrook Capital Partners and Warburg Pincus, the British roadside recovery group said on Thursday.

The group also said talks with Centerbridge Partners Europe and Platinum Equity Advisors had been ended, confirming statements from the companies earlier this week.

AA, founded by a group of motoring enthusiasts in 1905 and known in Britain for its yellow recovery vehicles, was brought to market by its previous private equity owners in 2014.

But the small-cap firm’s share price has slumped in recent years, amid concerns about the size of its debt pile. Its current market value is 175 million pounds ($223 million).

“The consortium has confirmed its strong interest in pursuing a possible all-cash offer for the company, including an intention to de-lever the AA’s capital structure significantly, consistent with the company’s objectives,” AA said in a statement.

Its board was continuing discussions with other investors over a range of alternative potential refinancing options, including the possibility of raising new equity, it added.

AA said earlier this month it had been granted an extension by regulators for potential offers until Sept. 29.

Its shares rose 6.4% at the open.

Reporting by Carolyn Cohn, editing by Sinead Cruise and Mark Potter

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