By Guy Taylor
Aston Martin shares soared by more than 12 per cent this morning after Chinese automotive group Geely said it will increase its shareholding to 17 per cent with an investment of £234m.
The investment will see Geely almost double its stake in the marque, becoming its third biggest shareholder, just behind Lawrence Stroll’s Yew Tree and Saudi Arabia’s Public Investment Fund.
Stroll, Aston Martin Lagonda’s executive chairman, said “Geely can offer us a deep understanding of the key strategic growth market of China as well as the opportunity to access their range of technologies. Geely share our vision for Aston Martin and want to be a more significant shareholder.”
As part of the equity increase, Geely will also have the chance to appoint a non-executive director to Aston Martin’s board as a representative.
In September last year, Chinese firm Geely acquired 7.6 per cent share in Aston Martin and there was speculation at the time that the company would increase its holding.
The announcement follows a strong month for the luxury car maker, which saw a revenue jump of 27 per cent in the first quarter as it began to turn a corner on a turbulent 2022, which saw supply chain issues hit the firm with a half billion pound loss.
Eric Li, Geely Holding group chairman 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.”
“Since first acquiring our minority holding last September, we have worked collaboratively with executive chairman Lawrence Stroll and his colleagues and now look forward to exploring joint technology synergies and new growth opportunities to help this iconic automotive brand to achieve its full potential.”
In its announcement, Aston Martin said that it would receive around £95m in cash from the subscription of the new shares.
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