Saudi sovereign fund to own 2nd most shares of Aston Martin
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Alaina
- . July 15, 2022
- . Update: July 16, 2022 2:08 pm
Saudi arabia– Saudi Arabia’s Sovereign Wealth Fund will be Aston Martin’s second-largest shareholder, with a 17% stake in financing to repay debt and strengthen its business, UK luxury carmakers said.
Faced with high levels of debt, a sharp plunge in stock prices, and the struggle of the F1 team, the company has 635 million through PIF’s £ 78m investment and £ 575m individual rights issue. He said he plans to raise pounds ($ 773.15 million).
The Saudi Arabian fund owns a 16.7% stake in Aston Martin, behind a 18.3% stake in Chairman Lawrence Stroll, who owns Utree after a rights issue, and is entitled to two seats on the automaker’s board of directors.
Mercedes-Benz AG, the German automaker, which is currently the second largest shareholder, will own approximately 9.7% after the capital increase. The company wanted to increase its stake to a maximum of 20% by 2023.
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Frequently starring in the James Bond movie series, the Aston Martin has a bumpy ride since the IPO in late 2018. Its London-listed stock has fallen nearly 73% so far this year. It rose 10% on Friday morning after hitting a record low. Aston Martin has announced that half of its new capital will be used to repay its debt. The company had a debt of £ 957m as of the end of March. It also helps accelerate future investment.
The Financial Times reported Thursday that Aston Martin had signed a deal to raise more than £ 500 million and brought in a Saudi Arabian fund as a majority shareholder.
PIF, which owns shares in electric car maker Lucid and British supercar group McLaren, did not immediately respond to Reuters’ request for comment.
Separately, Aston Martin reported a wholesale volume of 2,676 in the first half of 2022, down from 2,901 in the previous year. We expect to sell more than 6,660 units throughout the year.
