31st Mar 2025 09:52
(Alliance News) - Aston Martin Lagonda Global Holdings PLC on Monday announced further investment from its leader's consortium, plus plans to sell its stake in a Formula One team in an attempt to strengthen tje car maker's balance sheet.
In response, shares in the Gaydon, Warwickshire-based luxury sports car brand jumped 12% to 72.85 pence each in London on Monday. They remain down 55% in the past 12 months.
Aston Martin said Executive Chair Lawrence Stroll's Yew Tree Consortium plans to invest GBP52.5 million, raising its stake to 33% from 27.67%.
Yew Tree will buy 75 million new shares at 70 pence each, a 6.4% premium to Aston Martin's closing price on Friday of 65.80p. It also hopes to raise its stake to up to 35% "when possible", through the subscription for additional new shares in Aston.
Yew Tree said it is seeking a waiver from the Panel on Takeovers & Mergers to avoid the requirement for it undertake a mandatory offer for Aston. This is normally required if a party holds a 30% interest in a firm. It will then seek approval for the waiver from Aston's independent shareholders.
Stroll said the investment demonstrates his "unwavering support and commitment to Aston Martin".
"Since 2020, my Yew Tree Consortium partners and I have invested around GBP600 million into the company. This proposed investment further underscores my conviction in this extraordinary brand, and commitment to ensuring Aston Martin has the strongest possible platform for creating long-term value while reducing equity dilution via this premium subscription, which should greatly reassure shareholders," he said.
Aston Chief Executive Adrian Hallmark said the investment "provides additional headroom to support our future product innovation and business transformation activities, which combined, will accelerate our progress into being a sustainably profitable company."
In addition, Aston is looking to sell its minority investment in the Aston Martin Aramco Formula One Team, and expects to realise a premium to the current book value of around GBP74 million, with no impact to the long-term sponsorship agreement.
Aston said the proposed transactions are expected to enhance the group's total liquidity by over GBP125 million, further "strengthening the balance sheet, providing additional headroom and supporting future investments."
The company said trading in the first quarter is in line with the guidance previously provided.
For the first quarter, Aston expects volumes to be broadly in line with the prior year period although, as guided, the sales mix will be hurt by fewer deliveries of Specials. These are limited edition models, for example of the Valkyrie Spider and Valour.
By Jeremy Cutler, Alliance News reporter
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