9:03 am, September 6, 2022
Shares in Aston Martin tumbled by more than 15 per cent yesterday ending on 405p following the launch of a £575m rights issue.
That meant it started the day worth £560m but finished it valued at just over £470m, said The Times.
The Saudi Arabian-backed issue is part of a bid to raise £653m to help the beleaguered luxury sports car maker out of a £1.2bn hole, with much of the debt being pegged at what The Times says is ‘eye-watering interest rates’.
Underwriting the deal are JP Morgan Cazenove, Barclays, Credit Suisse and Deutsche Bank, which are being paid £25m for the privilege.
A total of £78m of the new shares are with Saudi Arabia’s Public Investment Fund at a 30 per cent discount of 353p each, which has handed the Saudis a 17 per cent holding.
They will also be able to gain second tranche of shares at an even cheaper price.
Mercedes-Benz which has an interest in Aston Martin thanks to swapping automotive technology is paying £56m for a stake of almost 10 per cent.
Meanwhile, under the new rights issue, current shareholders wanting to continue backing the manufacturer will be able to get four new shares for each one they own.
They are available at 103p each, which is 78 per cent cheaper than the 480p price at which stock in Aston Martin – whose executive chairman is Lawrence Stroll – closed last Friday.
Stroll’s consortium includes Lord Bamford and is shelling out £105m more to keep their 18 per cent stake, which has been watered down with the addition of the Saudis to the share register, said The Times.
