Private equity trio eye AA takeover, company considers share issue
LONDON, Aug 4 (Reuters) - British roadside recovery group AA AAAA.L has received three cash takeover offers from private equity groups, it said on Tuesday, but is also considering selling fresh equity as it tries to slash its debt pile.
The three bidders are Centerbridge Partners Europe and Towerbrook Capital Partners acting together, Platinum Equity Advisors and Warburg Pincus, AA said in a statement.
Each of the bidders said they would inject a "significant amount" of new equity capital into the group, the AA said.
But the AA, which was started by motoring enthusiasts in 1905 and is known for its distinctive yellow vehicles, said it was also weighing other options including a share issue.
The firm has 2.65 billion pounds ($3.46 billion) of total net debt, of which 913 million pounds is scheduled for repayment in the next two years.
"Debt reduction is therefore a key priority and the Group continues to...seek to reduce its indebtedness well ahead of the upcoming maturity dates," it said.
($1 = 0.7653 pounds)
(Reporting by Carolyn Cohn, editing by Sinead Cruise)
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