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Saudi Wealth Fund Puts $92 Million Into Aston Martin, To Become Brand’s Second-largest Shareholder
Saudi Wealth Fund (PIF) to become Aston Martin’s second-largest shareholder with an almost 17% stake.
PIF’s $92m investment, together with a $680m rights issue, will allow Aston Martin lower its debt and invest in new models.
New investment will allow Aston Martin, which has gone bankrupt seven times in its 109-year history, to secure its long-term future.
After the rights issue, PIF will own a 16.7% stake – behind the 18.3% holding Chairman Lawrence Stroll’s Yew Tree.
Mercedes-Benz AG, Aston Martin’s current second-largest shareholder, will own about 9.7% after the capital raising.
PIF has been diversifying its oil-rich investment portfolio. It also owns stakes in Lucid Motors and British supercar group, McLaren.
Saudi Arabia’s Public Investment Fund (PIF) will become Aston Martin’s second-largest shareholder with an almost 17% stake after agreeing to put around $92 million into the British luxury brand.
PIF’s $92 million investment, together with a $680 million rights issue, will allow the 109-year-old company lower its debt and invest in new models.
After the rights issue, PIF will own a 16.7% stake in Aston Martin – behind the 18.3% holding Chairman Lawrence Stroll’s Yew Tree – and will be entitled to two board seats.
German carmaker Mercedes-Benz AG, Aston Martin’s current second-largest shareholder, will own about 9.7% after the capital raising, to become the third largest shareholder.
“In 2020, I inherited a business in deep trouble that needed to be reset,” Stroll told reporters.
The sovereign wealth fund has been diversifying its oil-rich investment portfolio. It also owns stakes in electric carmaker Lucid Motors and British supercar group, McLaren.
The new investment will allow Aston Martin, which has gone bankrupt seven times in its 109-year history, to secure its long-term future.
Half of the new capital will be used to repay Aston Martin’s debt that stood at $1.134 billion at the end of March.
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