AA’s largest shareholder puts the brakes on breakdown company takeover after calling £ 219 million price tag ‘ridiculous’
The AA’s largest shareholder has put the brakes on a takeover of the breakdown company after calling the £ 219 million price tag ‘ridiculous’.
London-based investor Albert Bridge Capital has said it plans to oppose the 35 pence-per-share deal proposed by private equity firms Towerbrook Capital and Warburg Pincus, which has been recommended by the AA board. .
A deal needs the approval of 75 percent of shareholders, which means Albert Bridge with a 20 percent stake has a big say.
Jammed: Albert Bridge Capital has said it plans to oppose the 35p a share deal
US hedge fund Davidson Kempner, with a 16 percent stake, has already blessed the deal.
In a letter to shareholders, Albert Bridge chief investment officer Drew Dickson said the private equity deal fundamentally undervalues the AA, The Sunday Telegraph reported.
He added that the bankruptcy firm’s stock price was “ artificially and overly suppressed ” by the pandemic.
The price of 35p per share is an 86 percent decrease from the company’s price of 250p when it floated in 2014.