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AA 'to be sold off' in £5bn deal
The owners of the AA are exploring a sale of the 107-year-old motoring organisation as part of a £9bn break-up strategy.
The Sunday Telegraph can reveal that Acromas – the private equity-backed company which owns the AA – has appointed accountants Ernst & Young to explore the potential for a £5bn sale of the roadside assistance company. The company has been brought in to carry out pre-sales due diligence for the AA as a separate entity. Ernst & Young is also set to begin work to assess the value of Saga, the over-50s insurance company and travel agent, also owned by Acromas. A sales process for the AA is likely to launch early in the new year, once investment banks have been selected. It is the first time that Acromas has signalled publicly that the company could be split up. As recently as the company's full-year results in late July, Acromas insisted it was still looking at a stock market float of the entire group. Sources close to the process stressed that the appointment of Ernst & Young represents the first foray into a formal sales process with no final decision yet taken on how to return money to shareholders....Read more here: AA 'to be sold off' in £5bn deal