Aston Martin Lagonda Global Holdings PLC is seeking to raise funds to safeguard its future as the luxury carmaker ramps up investment for its next-generation platforms and electric vehicle strategy, according to industry publication Autocar on Wednesday.
Autocar highlighted that Aston Martin has £1.2 billion of outstanding bonds, bank drafts and loans on its books, meaning it is unlikely to be able to raise funds by taking on more debt, especially given the level of repayments currently required to service it.
Further, according to the report, the fundraising could include bringing a significant new investor in, potentially offering a position on the company’s board as an inducement for a holding that insiders suggest could be valued at upwards of £200 million.
Autocar’s sources suggest there are two leading contenders for the funding. One is linked to a Saudi Arabian investment fund, with Chair Lawrence Stroll having strong links to the country via the Aston Martin Formula 1 team’s title sponsorship with oil firm Saudi Arabian Oil Co, or Aramco. The other is linked to an investment fund based on the west coast of the US.
https://www.autocar.co.uk/car-news/business/exclusive-aston-martin-seeks-funds-safeguard-its-future
The stock was down 14% at 412.10 pence on Thursday, the worst performer in the FTSE 250.
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