RAC boss promises retail offer in float

RAC boss Chris Woodhouse has promised that small investors will be able to buy shares if, as expected, the breakdown service launches a £2bn stock market float.

the decision to list appears imminent, with the RAC set to announce FtSE 100 veteran Sir Mike Rake as its chairman today, alongside a host of pedigree board appointments.

And Woodhouse, who stands to make £40m from a float, said he favours giving small investors a chance to take part. ‘If we do decide to go down the IPo route, I’d imagine there would be some sort of retail offer,’ he said.

‘It seems right given the history of the business that it should be available to everybody.’

Including a retail offer would draw a sharp contrast with rival AA, which floated earlier this year, but only offered shares to large institutions. It has since faced criticism from shareholder groups for being slow to adopt the standards of investor disclosure required of a listed company.

Woodhouse is also thought to be considering other bells and whistles, such as a share discount for the RAC’s 8.2m members or even free shares for patrolmen.

the RAC’s private equity owner Carlyle could announce a float within days, after making a host of boardroom appointments seemingly designed to ensure a smooth transition to life as a public company.

Sir Mike Rake brings a wealth of experience, having served as chairman of KPMG, Bt and easyJet. He is still deputy chairman of Barclays and is also the President of the Confederation of British Industry.

David Lowden, former chief executive of market research firm taylor nelson Sofres, joins as senior independent director.

And the RAC will also welcome as non- executives Peter Plumb and Cilla Snowball, the former chief executive of personal finance firm Moneysupermarket and the latter the boss of advertising agency AMV BBDo.

Current chairman Rob templeman will step aside to make way for Rake, but will remain on the RAC’s board. templeman and Woodhouse are among staff expected to share in a £300m windfall from their combined 15pc stake when RAC hits the stock market.

Woodhouse is expected to pocket £40m, with templeman scooping around £30m.

Carlyle is expected to retain a stake after the float.

‘ I’d be stunned if they didn’t want to hold an investment for quite some time in the RAC,’ said Woodhouse.

there is still an outside chance that a bidder could come in with a knockout offer that would derail the float plans, said a well-placed source.

But the new boardroom appointments suggest the RAC, sold by insurer Aviva to Carlyle for £1bn in 2011, sees a stock market float as imminent.

Carlyle is understood to have delayed the plan until after the summer in the light of an overcrowded listings schedule that included Pets At Home, over-50s group Saga and Lloyds spin- off tSB.