AA still looks like a private equity accident #AA
It’s been a while since I last covered the AA (latest share price 80p, market cap £490 million), whose shares were thrust onto the stock market by private equity firms with a mountain of debt.
Since my last article, the company has been relegated from the prestigious FTSE-250. It’s now firmly rooted in the FTSE Smallcap Index.
See my previous article for an overview of the company’s balance sheet and debt position. My conclusion then was that the equity could be significantly undervalued, but the company needed to stay on good terms with the bond market until loan maturities start to hit it from 2022.
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