18th May 2023 10:23
(Alliance News) - Aston Martin Lagonda Global Holdings PLC on Thursday said it has received a "substantial investment" from Chinese vehicle manufacturing giant Geely International Ltd.
Shares in the Gaydon, England-based luxury carmaker were up 12% to 258.60 pence each in London on Thursday morning.
Geely will raise its stake in Aston Martin to 17%, buying 42 million existing shares at 335p from Yew Tree, who will remain the majority shareholder. It also will subscribe for 28 million new shares at the same price. In total, the investment is about GBP234 million.
Aston Martin will receive around GBP95 million in cash from the subscription.
The purchase price represents a 45% premium to the closing price on Wednesday, being the last day before the announcement.
Geely will also become Aston Martin's third largest shareholder, after Yew Tree and Public Investment Fund, which hold 21% and 18%, respectively.
Back in September 2022, Geely had picked up a 7.6% stake in Aston Martin.
Executive Chair Lawrence Stroll said: "This announcement is a further significant step towards delivering our ambition for Aston Martin. Geely Holding, who initially became a shareholder last year, sees tremendous potential for Aston Martin's long-term growth and success. They offer us a deep understanding of the key strategic growth market that China represents, as well as the opportunity to access their range of technologies and components."
By Sophie Rose, Alliance News reporter
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