The Public Investment Fund of Saudi Arabia becomes the second major shareholder of Aston Martin, which registers a new investment of 770 million euros.
Aston Martin is set to get a financial boost with new investment from Saudi Arabia. His big boss Lawrence Stroll talks about a contribution that “game changer”while Aston Martin Lagonda was hit last year by severe financial shocks, debt and a plummeting share price.
Last May, CEO Tobias Moers – who had been poached from AMG by Lawrence Stroll – was replaced by former Ferrari executive Amedeo Felisa. Today, the British manufacturer announces a new “equity financing and strategic investment” thanks to the involvement of the Saudi Public Investment Fund (PIF).
The PIF owns the oil company Aramco, which has been the title sponsor of Aston Martin in Formula 1 since this year. such as Boeing, Disney, CitiCorp, Facebook, BP, Marriott, Uber, Tesla, Nintendo or TotalEnergies. In July 2021, the PIF also became one of the major investors in the McLaren Group, in connection with the financial restructuring of the Woking builder. It also owns English football club Newcastle United and the controversial LIV Golf.
The Saudi Public Investment Fund becomes, with this new operation, the second largest shareholder of Aston Martin Lagonda, up to 17%. The Yew Tree consortium formed by Lawrence Stroll holds 18.3% and Mercedes-Benz retains 9.7% of the shares, the two entities thus reducing their stake which was previously 22% and 11.7%. The two shareholders have however reinvested, bringing to 770 million euros the cumulative contribution with the PIF.
“Overall, this is a game-changing event for Aston Martin, supporting the delivery of our strategic plans and accelerating our long-term growth potential”commente Lawrence Stroll. “It transforms our balance sheet, liquidity and cash flow while clarifying our path to being sustainably positive in free cash and creating meaningful shareholder value. With the new leadership team in place, led by Amedeo Felisa, we have the right people and the right strategy to fully realize the potential of Aston Martin.”
“Aston Martin’s return to the pinnacle of motorsport with the Aston Martin Aramco Cognizant F1 Team also marked the start of a new era for our iconic British brand. Our focus on enhancing the value of brand and on unlocking Aston Martin’s potential is already driving growing demand from a new generation of customers, with more than 60% new to the brand in 2021.”
Aston Martin also specifies that it refused the investment offer from a consortium which included the Chinese group Geely, which owns brands such as Volvo, Proton and Lotus.