7:37 am, May 18, 2023
Chinese powerhouse Geely has increased its shareholding in Aston Martin.
The firm has committed approximately £234m, uplifting its share of the British luxury carmaker to circa 17 per cent and giving it access to add a non-executive director to Aston Martin Lagonda’s board.
Geely is now the third largest shareholder of the fabled brand, behind Saudi Arabia’s Public Investment Fund (circa 18 per cent) and Canadian Lawrence Stroll’s Yew Tree Consortium which still remains the largest shareholder at around 21 per cent.
Aston Martin Lagonda is set to receive around £95m in cash from the subscription of new shares.
Stroll, executive chairman of the Aston Martin Lagonda board, said: ‘This announcement is a further significant step towards delivering our ambition for Aston Martin.
‘Geely Holding, who initially became a shareholder last year, sees tremendous potential for Aston Martin’s long-term growth and success.
‘They offer us a deep understanding of the key strategic growth market that China represents, as well as the opportunity to access their range of technologies and components.
‘Geely share our vision for Aston Martin and want to be a more significant shareholder. This transaction enables the creation of a long-term partnership with Geely – a relationship that I believe will bring very significant value for all of our shareholders over time.’
He added: ‘It is a further example of how we are successfully building Aston Martin into the most desirable ultra-luxury British performance brand through a combination of our own product development, technology and design and also drawing on the skills and capabilities of major international companies that are both strategic partners and shareholders.’
The increased investment comes as Aston Martin readies a series of new models, starting with a DB11 replacement.
Thought to be called DB12, the new GT will be revealed later this month.
Eric Li, Geely Holding group chairman said: ‘Our decision to increase our shareholding in Aston Martin reflects our confidence in the company’s growth prospects, its technologies and its management team.
‘Since first acquiring our minority holding last September, we have worked collaboratively with executive chairman Lawrence Stroll and his colleagues and now look forward to exploring joint technology synergies and new growth opportunities to help this iconic automotive brand achieve its full potential.’
Geely acquired a 7.6 per cent share in Aston Martin in September 2022, and it was rumoured at the time the company was keen to increase its share.
Autocar reported in December 2022 Lawrence Stroll and his Yew Tree investment group had increased its share to 28.29 per cent in an apparent move to block a takeover bid from Geely.
