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AA Announces Recommended Cash Acquisition By Consortium Of TowerBrook Funds, Warburg Pincus Funds

AA Plc (AA.L) said the boards of the Group and Bidco have reached agreement on the terms of a recommended cash acquisition pursuant to which Bidco shall acquire the entire issued and to be issued ordinary share capital of the AA. Bidco is a newly formed joint venture company owned in equal shares by: funds advised by TowerBrook or its affiliates; and private equity funds managed by Warburg Pincus LLC or its affiliates. As per the terms, AA shareholders shall be entitled to receive: for each AA Share 35 pence in cash. The deal values the entire issued and to be issued ordinary share capital of the AA at approximately 219 million pounds. The Group noted that eligible AA shareholders may elect for the alternative offer, pursuant to which they would receive unlisted securities.

The AA Directors recommended unanimously that scheme shareholders vote in favour of the scheme at the Court Meeting and AA shareholders vote in favour of the resolutions to be proposed at the General Meeting.

Bidco has received support for the deal from AA shareholders interested in a total of 96,484,690 AA shares, representing, in aggregate, approximately 15.5 percent of the AA's ordinary share capital.

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