The owners of the Rac Roadside Recovery Service are preparing to unload the company in an agreement which could enhance it up to 5 billion pounds sterling.
Sky News learned that CVC Capital Partners, the Singaporean Sovereign Investment Fund Gic and Silver Lake Partners had discussions on the plans to launch an auction or a stock market rating of the company.
The Rac, which was founded in 1897, is one of the oldest road assistance companies in the world.
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It now has around 14 million members, which makes it almost as important in terms of customers as the AA, its greatest rival.
A precise assessment of the company was not clear on Thursday, although the initiates said that a range between 4 billion pounds sterling and 5 billion pounds sterling was reasonable.
The AA is also supported by investors in investment that have started to explore an outing.
Sky News revealed earlier this year that Towerbrook Capital Partners, Warburg Pincus and Stonepeak had appointed JP Morgan and Rothschild to examine AA strategic options.
Rac shareholders are at an anterior stage of deliberations, with investment banks to be appointed.
People close to the situation said any decision concerning a transaction would only be made next year, although it is possible that the advisers are hired in the coming months.
The Rate counts almost as many members as its main rival. File peak: istock
The RAC was sold by Aviva, the insurer, to the carlyle buyout company for 1 billion pounds sterling in 2011 in order to focus on its basic insurance operations.
Carlyle then called on GIC as a co-investor three years later in a move that derailed the plans for stock market flotation.
CVC – A former spouse of AA – bought Carlyle in 2015 thanks to an agreement involving its fundraising funds for the longer term.
Silver Lake, the technology-focused capital company, went on board in 2021.
The RAC employs thousands of people and is one of the most recognizable consumption marks in Great Britain.
He is chaired by the former Debenhams chief, Rob Templeman and led by the Director General Dave Hobday.
The profitability of the company has increased from around 170 million pounds to sterling when CVC has invested in more than 300 million pounds Sterling.
Bankers think that the owners of the RAC will wish to make it public if the market conditions allow it, but are open to a private sale of the company.
AA has also experienced a major improvement in its performance, having recorded four consecutive years of customer growth, income and profits.
He has also gone through a succession of owners in the past 25 years.
In 1999, the AA was bought by Centrica, the owner of British Gas, for 1.1 billion pounds sterling.
He was then sold five years later at CVC and Permira, two buyout companies, for 1.75 billion pounds Sterling, and sat under the company’s acrom of the company alongside Saga for a decade.
The AA registered on the London Stock Exchange in 2014, but its shares have endured a miserable race, being private almost seven years later at just over 15% of its value to the float.
None of the parts contacted by Sky News would comment.