The Saudi Arabian Sovereign Fund (PIF) becomes Aston Martin’s second largest shareholder. The British carmaker said it would use the funds received from the PIF to pay off debt.
The company, which is struggling with heavy debt, declining shareholding and problems with the F1 team, said it plans to raise £653 million ($773.15 million). Of this amount, PIF will allocate £78 million in investments, and the remaining £575 million will be received through an additional share issue.
Upon completion of the transaction, the Saudi Arabian Sovereign Fund will become Aston Martin’s second major shareholder with a 16.7% stake and two seats on the Board of Directors. Lawrence Stroll’s Yew Tree consortium remains the company’s largest shareholder with an 18.3% stake.
Since the start of the year, Aston Martin shares on the London Stock Exchange have fallen almost 73% in price, but on today’s news of the deal with PIF they rose 10%. According to Aston Martin, half of the investment received will be used to pay off the debt, which stood at £957 million at the end of March.
Aston Martin also reported on the number of cars sold in the first six months of 2022 – 2,676 compared to 2,901 in the same period a year earlier. Aston Martin expects to sell more than 6,660 vehicles for the whole of 2022.
Source: F1 News
I’m Todderic Kirkman, a journalist and author for athletistic. I specialize in covering all news related to sports, ranging from basketball to football and everything in between. With over 10 years of experience in the industry, I have become an invaluable asset to my team. My ambition is to bring the most up-to-date information on sports topics around the world.
