This is the last article you can read this month
You can read more article this month
You can read more articles this month
Sorry your limit is up for this month
Reset on:
Please help support the Morning Star by subscribing here
The Automobile Association (AA) is poised for a £1.4 billion stock market flotation it was revealed yesterday.
Founded in 1905 the AA has four million members and is currently owned by Acromas Holdings, the private equity-backed firm behind the recent sale of shares in over-50s holidays and insurance company Saga.
Unlike the flotation of Saga, which involved retail investors, Acromas has secured the backing of City institutions such as Aviva, Blackrock and Invesco to buy shares worth at least £930 million as part of a management buy-in fronted by former Green Flag boss Bob Mackenzie as executive chairman.
Trading in AA shares is expected to commence later this month and value the company, which has an estimated 40 per cent market share, at £1.38 billion.
AA staff union GMB said it was baffled as to who would want to get into owning AA given that it is trussed with billions of debts to pay for the cash taken out of it by Acromas.
