June 5 Britain's Automobile Association (AA) is
planning a 4 billion pound ($6.72 billion) stock market
flotation that its parent, Acromas Holdings, could announce as
early as Friday, Sky News reported on its website.
The broadcaster, citing a source, said deal was being
finalised and could still fall through. It added that the
listing would value the motoring services firm's equity at about
1.3 billion pounds ($2.18 billion). (link.reuters.com/bap89v)
Sky said 10 institutional investors had been lined up to buy
substantial stakes in the AA, naming Aviva Investors, Blackrock
Inc, JP Morgan Asset Management, Lansdowne Partners and
Legal & General Investment Management as some of the deal's
Sky's source also said Bob MacKenzie, a former boss of car
insurer Green Flag, was slated to become the AA's new chairman.
The parent company, Acromas, declined to comment, while the
AA could not be reached for comment outside of regular business
Acromas, which is owned by private equity firms Charterhouse
, CVC and Permira, was created in
2007 at the peak of the buyout boom by the 6.2 billion pounds
merger of the AA and British travel and insurance company Saga
Saga's shares have performed worse than initially expected
since their market debut last month as the market for flotations
in London has lately become more turbulent.
In other flotations, Greetings card retailer Card Factory
saw its shares decline after the start of dealings and
fashion retailer Fat Face IPO-FFFL.L pulled its flotation
plans a day before Saga's debut.
($1 = 0.5956 British Pounds)
(Reporting by Richa Naidu in Bangalore)