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Stroll attracts new Saudi Arabian investment to Aston Martin

Aston Martin is set to be boosted by new investment from Saudi Arabia’s sovereign wealth fund in what executive chairman Lawrence Stroll calls a “game changing event.”

Aston Martin logo on the Aston Martin AMR21

Aston Martin Lagonda Holdings been hit over the past year by financial pressures, debt and a tumbling share price.

In May, CEO Tobias Moers, who had been headhunted by Stroll from Mercedes, was replaced by former Ferrari boss Amedeo Felisa.

The company has now announced plans for new “equity financing and strategic investment” from Saudi’s Public Investment Fund.

PIF is the owner of Aston Martin Formula 1 team sponsor Aramco, and its diverse range of international interests includes shareholdings in a range of household names such as Boeing, Disney, CitiCorp, Facebook, BP, Marriott, Uber, Tesla, Nintendo and Total.

In July 2021, PIF became a major investor in the McLaren Group as part of a refinancing of the Woking-based organisation. It also owns Newcastle United football club, and the controversial LIV Golf organisation.

With additional funding from existing investors, including Mercedes-Benz, Aston Martin is set to raise a total of £653m, leaving PIF as the second-largest shareholder with a 17% stake in the business.

Stroll’s Yew Tree consortium will own 18.3%, and Mercedes-Benz will retain 9.7%, both having reduced their holdings.

In making the announcement Aston Martin confirmed it has rejected an investment proposal from a consortium that included China’s Geely Group, which owns brands such as Volvo, Proton and Lotus in its portfolio.

Lawrence Stroll, Team principal Aston Martin Racing

Lawrence Stroll, Team principal Aston Martin Racing

Photo by: Erik Junius

Stroll made it clear that the Saudi investment was a major coup for the company.

“Overall, this is a game changing event for Aston Martin, supporting the delivery of our strategic plans and accelerating our long-term growth potential,” he said.

“It transforms our balance sheet, liquidity and cashflow profile and provides greater clarity on our pathway to become sustainably free cash flow positive and create significant shareholder value.

“With the new leadership team in place, led by Amedeo Felisa, we have the right team and the right strategy to fully realise the long-term potential of Aston Martin.”

He also stressed the ongoing role of the F1 team in promoting the marque: “Aston Martin's return to the pinnacle of motorsport with the Aston Martin Aramco Cognizant F1 team, has also ushered in a new era for our iconic British brand.

“Our focus on building brand equity and unleashing the potential of Aston Martin is already delivering growing demand from a new generation of customers, with more than 60% new to the brand in 2021.”

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Edition

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