7:45 am, September 30, 2022
Chinese powerhouse Geely has taken a 7.6 per cent stake in Aston Martin Lagonda.
The firm, which owns brands including Lotus, Volvo, Polestar and LEVC, said it can ‘contribute’ to the British marque’s future.
Announcing the shareholding, Daniel Donghui Li, Geely Holding Group CEO said: ‘We are delighted to announce our investment in Aston Martin and believe that with our well-established track record and technology offerings, Geely Holding can contribute to Aston Martin’s future success.
‘We look forward to exploring potential opportunities to engage and collaborate with Aston Martin as it continues to execute its strategy to achieve long term, sustainable growth and increased profitability.’
Aston Martin Lagonda (AML) had previously rejected a cash injection by Geely.
The proposal from the Chinese carmaker – which came from the Atlas Consortium and consisted of Geely and InvestIndustrial – in July would have seen a £1.3bn investment into AML.
But the luxury sports car maker declined the deal saying, at the time, ‘there is no basis for further discussion’.
The Geely stake completes Aston Martin Lagonda’s £654m equity capital raise.
Launched on July 15, the capital raise will help Aston fund a new range of models including expansion of the DBX SUV range.
Aston Martin Lagonda chairman Lawrence Stroll said: ‘I am delighted that we have successfully completed this transformational capital raise which significantly strengthens our financial position and enhances our pathway to becoming sustainably free cash flow positive.’
He added: ‘I would like to thank our existing shareholders for their continued support in reaching this important milestone.
‘The Yew Tree Consortium’s shareholding now stands at 19 per cent following its full participation in the rights issue and additional investment through the capital raise. I would also like to thank Mercedes-Benz for their investment and the strong long-term partnership we have created.
‘In addition, I would like to thank The Public Investment Fund, one of the leading global investment funds, which has become a new anchor shareholder with a 18.7 per cent stake in the company.
‘Finally, I would like to welcome Geely Holding, who have today announced that they have become a shareholder.’
