8:39 am, September 5, 2022
Aston Martin has confirmed a £575m rights issue, which will be supported by the Public Investment Fund (PIF) of Saudi Arabia.
The British outfit told shareholders this morning (Monday) that it will launch a share offer to current investors intended to raise new cash, as part of a previously announced £653m fundraising move.
Aston Martin said the new funding will be used to pay down its debts and to improve the firm’s liquidity.
The Gaydon-based manufacturer said its rights issue has received ‘irrevocable commitments’ from investors including Saudi Arabia’s Public Investment Fund (PIF), the Yew Tree Consortium and Mercedes-Benz.
PIF, which is controlled by Crown Prince Mohammed bin Salman, is Saudi Arabia’s sovereign wealth fund, one of the biggest in the world.
It has around half a trillion dollars to throw around, though its investments often court controversy.
The fund’s takeover of Newcastle United Football Club last year – it provided 80 per cent of the cash for the deal – sparked protests outside the Premier League side’s stadium over Saudi Arabia’s human rights abuses.
It is understood that PIF will become the company’s second largest shareholder following the fundraising.
Aston Martin said shareholders representing over a third of the company’s share capital have said they will vote in favour of the rights issue ahead of its general meeting on Thursday.
The firm’s board said it believes the capital raise can support its targets of approximately 10,000 wholesale sales, £2bn in revenues and £500m in adjusted earnings by the 2024-25 financial year.
