The AA has become a potential takeover target as it looks to raise funds to re-balance its books in light of a £2.65 billion debt.
In a statement issued via the London Stock Exchange this morning (August 4) the PLC said that Centerbridge Partners Europe acting with TowerBrook Capital Partners (UK), Platinum Equity Advisors, and Warburg Pincus International had all made approaches regarding takeover bids.
The moves follow news of the business’s efforts to address its debt, £918 million of which must be repaid within the next two years.
It is also considering staying with its current ownership and raising the money itself from shareholders and said that it was unclear whether formal takeover bids would be lodged, however.
The AA said it had traded "resiliently" throughout during the COVID-19 coronavirus pandemic as it “continued to provide an essential service to the community”.
It added: “We continue to expect our financial performance this year to be only slightly below that of FY20.”
As well as its roadside assistance offering, The AA – floated on the stock exchange back in 2014 – also delivers driving lessons and offer motor insurance and vehicle finance.
The business said that its motor insurance operations had performed well in recent months, with a reduced number of claims due to the COVID-19 lockdown.
It is now focussed on reducing its debts, however.
AA chairman John Leach said: "The AA is a high quality and robust business, with an iconic brand, a resilient business model and a highly committed and loyal workforce.
"However, in order for us to be able to achieve our full potential, the board believes that it must now prioritise reducing the group's indebtedness."
The BBC reported that news of The AA's takeover approaches had sent the AA's shares up 13% to 28p this morning.