The Geely Group, currently the owner of brands such as Lotus, Zeekr, Volvo and Polestar, (among other companies where it also has shares) will acquire around 42 million shares common shares of Lawrence Stroll, currently Aston Martin’s largest shareholder, at USD 416 each and will subscribe to another 28 million shares at the same price, raising around USD 118 million for the British firm.
Due to this purchase, Aston Martin shares jumped nearly 25% after the luxury automaker announced a investment of USD 290 million by Geely of China, doubling the car company’s stake to make it Aston Martin’s third largest shareholder.
With this, Aston Martin ensures its long-term continuity and reduces its net debt, which at the end of March was above USD 1,000 million. It is worth remembering that Aston Martin went bankrupt a total of seven times in its history, but everything seems to indicate that 2023 will be a year where it achieves record capital spending thanks to this investment.
Stroll, (who in case you don’t know is precisely the father of the F1 driver) highlighted that Geely’s investment “offers a deep understanding of the key strategic growth market that China represents, as well as the opportunity to access its range of technologies and components”.
Geely Chairman Eric Li said: “Our decision to increase our shareholding in Aston Martin reflects our confidence in the company’s growth prospects, its technologies and its management team.”
This new investment will give Geely a 17% stake in the company and entitle it to a seat on the board.behind Saudi Arabia’s Public Investment Fund (PIF), which is the number two shareholder and Lawrence Stroll at the helm. This is expected to improve Aston Martin’s profitability this year and accelerate the development of new sports cars.
