Aston Martin in talks to raise equity capital
Struggling luxury carmaker is considering an injection of capital from outside investors
Aston Martin has held talks with several potential investors about raising fresh capital through an equity sale, according to four people familiar with the matter.
An capital injection from outside investors is one of a number of options being considered by the luxury British carmaker to help bolster its squeezed finances. Other alternatives include a rights issue, these people said.
The company has held meetings over recent weeks with a number of potential investors, including Lawrence Stroll, the Formula 1 billionaire, as well as other carmakers, including potential investors from the Middle East, India and China.
Of the talks, those with Mr Stroll are at the most advanced level, one of the people added.
“Nothing is off the table at the moment,” said one person familiar with the situation.
A spokesman for Aston Martin declined to comment.
The luxury carmaker is seeking additional funding to help it bridge the gap until sales of its sports utility vehicle, the DBX, begin in the second quarter of next year.
Mr Stroll owns the Racing Point F1 team and previously made investments into high-end clothing brands such as Pierre Cardin, Ralph Lauren, Tommy Hilfiger, Asprey and Garrard.
A spokesman for Racing Point said the team “does not comment on speculation and rumours”.
Reports of Mr Stroll’s interest in the business were first reported by Autocar Magazine earlier this month. Aston’s shares rose 18 per cent on the day of the report.
The company raised $150m of high-interest debt in September, of which part was used to pay down earlier borrowings, leaving the business with £60m. It also has the option to raise another $100m, charging interest at 15 per cent, if it books 1,400 orders for the DBX by June.