AA's shares fell on their first day of trading after the breakdown service's private equity owners sold the business for nearly £1.2bn.
Shares in the AA dropped more than 3% in early conditional dealing, taking the shine off a deal that saw its owners sell their entire stake. After floating at 250p, the shares dropped to 231p but staged a partial recovery to trade at 241.75p.
A group of private equity firms, operating as
Saga floated separately last month.
The AA flotation is based on a "management buy-in" that transplants a new leadership team into the company. The initial investors, including
Mackenzie said: "We are delighted to have secured £1.4bn to acquire the AA, with our financial backing coming from many leading
Mackenzie, a former boss of AA's smaller rival Green Flag, and his team will work alongside
Under an agreed pay deal, Mackenzie and two other board members,
The AA was founded as the
Unconditional dealing in AA shares will start on 26 June.
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