By Charlie Conchie
Aston Martin has bagged a major investment from Saudi Arabia’s Public Investment Fund today in a £654m capital raise to bolster its balance.
The iconic British car firm said the investment from the Saudi sovereign wealth fund made it a new “anchor shareholder” with an 18.7 stake in the firm. The round has also seen Chinese carmaking giant Geely snap up a 7.6 per cent stake.
Aston Martin boss Lawrence Stroll said the cash would boost the firm’s financial position.
“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,” he said in a statement.
“Along with Amedeo and the leadership team, we are fully focused on unlocking the significant shareholder value creation potential of this ultra-luxury British performance brand.”
The Public Investment Fund now becomes the second largest shareholder behind Stroll’s Yew Tree Consortium, which now holds a 19 per cent stake following the raise.
The Aston Martin stake adds to Geely’s portfolio of international car brands which includes Volve and Lotus.
Shares in Aston martin have tumbled beyond 65 per cent this year but were delivered a boost of nearly five per cent this morning on news of the investment.
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