2020-01-31 07:25
Aston Martin Lagonda has secured investment that will enable it to continue trading and complete its Second Century Plan. Canadian billionaire Lawrence Stroll is investing £200m for a stake in the business and becomes company chairman, while an additional share issue is expected to raise another £500m. Aston Martin CEO Andy Palmer will stay in his position.
Aston Martin’s financial troubles have been well documented of late with a loss in 2018 and profits warnings last year, with its share price dropping to less than three quarters of the launch value at its IPO in October 2018. Its new DBX SUV, to be built at an all-new plant at St Athan in South Wales with deliveries starting in a few months, is crucial to Aston Martin’s success.
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The company had admitted in a trading update earlier this month that it “remains in discussions with potential strategic investors, which may or may not involve an equity investment into the company”. It is believed that Chinese car maker Geely, owners of Lotus, Volvo and LEVC, were also offering investment in the company.
Stroll, who made his fortune through his investment in upmarket fashion brands, is reported by Forbes magazine to have a net worth of $2.6billion. He replaces Penny Hughes, who joined Aston Martin Lagonda shortly before its IPO, as chairman.
Stroll also famously owns the Racing Point Formula One team, having rescued Force India from administration in 2018, changed the team’s name and installed his son, Lance, as a driver.
The name is set to change again in 2021 when Racing Point becomes a works Aston Martin team powered by Mercedes engines, just like Aston’s V8 road cars. Aston Martin CEO Andy Palmer has long harboured dreams of his company becoming a works F1 team and that will become a reality when his company’s sponsorship and technical partnership with Red Bull Racing finishes at the end of the 2020 season.
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