Aston Martin has gained Geely as a new investor following the completion of a rights issue first announced in July, which is aimed at raising funds to pay down debts as well as fuel investment in future product.
As detailed in a regulatory filing issued on Thursday, Geely has acquired 7.6% of the shares of Aston Martin. The amount paid hasn't been disclosed.
The stake joins existing major stakes owned by Geely in Mercedes-Benz, Polestar, and Volvo. The Chinese auto giant also controls a range of privately owned automakers including Proton and Lotus.
Saudi Arabia's sovereign wealth fund, known as the Public Investment Fund, was also part of the rights issue. The fund has acquired 18.7% of the shares, making it the second biggest shareholder of Aston Martin, behind the 19% of Yew Tree and ahead of the 9.7% of Mercedes-Benz. Yew Tree is the consortium led by fashion mogul Lawrence Stroll, current chairman of Aston Martin and father of Aston Martin Formula 1 driver Lance Stroll.
Aston Martin V12 Vantage Roadster
The rights issue has seen Aston Martin raise 654 million British pounds (approximately $723.3 million), the automaker said on Friday.
"I am delighted that we have successfully completed this transformational capital raise which significantly strengthens our financial position and enhances our pathway to becoming sustainably free cash flow positive,” Stroll said in a statement.
Half of the raised funds will be used to reduce Aston Martin's debts, with the remainder to be used for product development as well as to go into a cash pile that can provide the company with liquidity in case of economic shocks.
New products in the pipeline at Aston Martin include updates to its front-engine sports cars due in 2023, the Valhalla hypercar in 2024, and an electric vehicle in 2025. The EV has been confirmed as a sports car. An electric SUV is expected to follow in 2026.
source: https://www.motorauthority.com/news/1137333_geely-buys-7-6-stake-in-aston-martin
by Viknesh Vijayenthiran
http://www.boscheuropean.com
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