Aston Martin shares leap as Lawrence Stroll leads rescue deal
Shares in Aston Martin rose 20 per cent today as it was announced that Canadian billionaire Lawrence Stroll would take a 20 per cent stake in the ailing carmaker.
Stroll’s stake, which will be worth £182m, is part of a £500m funding raise which will include a rights issue from major shareholders.
Since floating in October 2018 James Bond’s carmaker of choice has seen its share price plummet.
In December rumour surfaced that Stroll, whose son Lance is a Formula 1 driver, would take a stake in the famous brand.
Stroll, who owns F1 team Racing Point, made his money through investing in fashion houses such as Tommy Hilfiger and Michael Kors.
The investment comes as Aston Martin prepares to release its first ever SUV model, the DBX, onto the mass market this year.
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Aston Martin chief executive Andy Palmer said: “[Stroll] brings with him his experiences and access to his Formula 1 team.
“We’ve talked a lot in the past few years about wanting to be clearly rooted in luxury and obviously Mr Stroll knows an awful lot about luxury.”
Under the agreement, Stroll’s Racing Point team will become Aston Martin F1 from the 2021 season.
Stroll will join the board of the carmaker as chairman, with incumbent Penny Hughes stepping down.
Neil Wilson, chief markets analyst at markets.com, said: “Aston Martin has found its white knight in the shape of Lawrence Stroll.
“After months of speculation, he’s come good – Stroll puts in £187m while Aston is tapping investors with a £318m fully underwritten rights issue. Stroll will also provide £55.5m of short-term working capital.
“This is a vital cash injection – but will it be enough?”
Earlier this month the Financial Times reported that Lotus owner Geely was considering taking a stake in the luxury carmaker.
Geely currently owns a 10 per cent share in German company Daimler, which sells technology and engines to Aston Martin.