Geely Automobile acquires 7.6% stake in Aston Martin
Aston Martin has acquired Geely as a new investor following the completion of a rights issue announced in July.
As detailed in a regulatory filing released Thursday, Geely has acquired a 7.6% stake in Aston Martin. The amount paid was not disclosed.
The stake joins Geely Automobile's existing major holdings in Mercedes-Benz, Polestar, and Volvo. The Chinese auto giant also controls various privately owned automakers, including Proton and Lotus.
Saudi Arabia's Public Investment Fund, a sovereign wealth fund, also participated in the share issue. The fund acquired 18.7% of the shares, making it Aston Martin's second largest shareholder, behind Yew Tree's 19% and ahead of Mercedes-Benz's 9.7%. consortium led by fashion mogul Laurence Stroll, father of Aston Martin's Formula 1 driver Lance Stroll.
Aston Martin said Friday that it raised 654 million British pounds ($723.3 million) through the rights issue.
In a statement, Strohl said, "We are pleased to have successfully completed this transformational capital raising that will significantly strengthen our financial position and reinforce our path to a sustainable free cash flow surplus."
Half of the funds raised will be used to reduce Aston Martin's debt, while the remainder will be used for product development as well as a cash pile that can provide liquidity in case of economic shocks.
New products planned for Aston Martin include an updated front-engine sports car due in 2023, a Valhalla hypercar in 2024, and an electric car in 2025. The electric car is confirmed to be a sports car; an electric SUV is expected to follow in 2026.
