Aston Martin said that it is keeping funding options underway after reports Saudi Arabia’s investment arm is in words to buy a stake in the business.
Saudi Arabia’s Public Investment Fund is reportedly in talks with Aston Martin Lagonda Global Holdings (AML) over a stake in the business that could be worth at least 200 million pounds sterling (USD 243.5 million).
The British luxury car manufacturer refused to confirm or deny the reports. Still, following the news on Thursday, a drop in the company’s share price reduced to nine per cent from a set down of 20 per cent earlier during the day.
The carmaker whose vehicles frequently appear in James Bond movies has struggled, with the share price falling by nearly 68 per cent during this year alone.
Aston Martin is focusing on the launch of new models starting next year
In January, Aston Martin blamed the lower than projected profits on a setback in shipments of its limited-edition Valkyrie sports car. Still, on Thursday, the company stated that production of the model has started to gain momentum steadily.
In a further effort to reassure investors, it added that its management team, led by the Chief Executive Officer, Amedeo Felisa, is increasingly focusing on launching new models in 2023.
The Financial Times, citing four people to be close to the PIF investment talks, said Aston Martin was seeking to raise additional funding for its new range of cars
Autocar late on Wednesday reported the Gaydon-based carmaker was seeking to raise funds, saying there were two leading contenders, including one linked to the Saudi fund and another to an investment fund based in the United States.
The Formula One team of Aston Martin, whose topmost stakeholder is the CEO, Lawrence Stroll, and the second largest investor is Mercedes Benz, has an existing partnership with Saudi Aramco, including team sponsorship rights and a licensing deal.
About Aston Martin
Aston Martin Lagonda Global Holdings PLC, the iconic British manufacturer, is a modern, exclusive sports car brand with a unique heritage instantly recognised worldwide. Started in 1913 by Lionel Martin and Robert Bamford, the automaker is recognised as an iconic global brand synonymous with style, luxury, performance, and exclusivity. After celebrating its 100th birthday in 2013, Aston Martin looks determinedly forward to its next century of Power, Beauty, and Soul.
Since 2007, Aston Martin has been sovereign and today is owned by a consortium of investment houses, including Investment Dar, Adeem Investment and InvestIndustrial.