Aston Martin Lagonda Global Holdings PLC on Monday confirmed its plan for the launch of a rights issue to raise £575.8 million, supported by a fund controlled by Saudi Arabia’s de facto leader.
The Gaydon, Warwickshire-based luxury carmaker noted Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, Lawrence Stroll’s Yew Tree Consortium, and fellow car maker Mercedes-Benz Group are taking up their full entitlements, amounting to 45% of the total rights issue.
PIF, which is controlled by Crown Prince Mohammed bin Salman, is Saudi Arabia’s sovereign wealth fund, one of the biggest in the world. Formed in 1971 to support the Saudi economy, PIF has around $620 billion in assets under management.
Aston will issue 559 million new shares as part of its rights issue, on the basis of four new shares for every one existing share. The shares will be issued at a price of 103 pence each, reflecting a 79% discount to the company’s closing price on Friday last week at 480p.
Shares were down 11% at 427.41 pence each on Monday morning in London.
The fully committed and underwritten raise is part of a larger £653.8 million equity raise, announced back in July. It said it would raise the funds through a placing of 23.3 million shares at a price of £3.35 each for £78.0 million to PIF.
Aston says: ‘The board believes the proposed capital raise will serve to further support the company’s re-affirmed medium-term targets of approximately 10,000 wholesales, approximately £2 billion revenue and approximately £500 million adjusted Ebitda by 2024-25, and strongly positions it for positive free cash flow generation from 2024.’
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