Aston Martin strikes rescue deal with Formula 1 billionaire
Group led by Lawrence Stroll to inject £182m into embattled sports car maker
Aston Martin will raise £500m through a rights issue and issuing fresh shares to a consortium led by Formula 1 billionaire Lawrence Stroll, in a move that will trigger the departure of its chairman and a shake-up of the struggling luxury carmaker’s business plan.
Mr Stroll’s consortium will inject £182m for a stake of 16.7 per cent in the business at a price of £4 per share, while Aston will issue a rights issue of £318m following the company’s results next month. His stake will rise to 20 per cent following the rights issue.
He will become executive chairman of the company, leading to the departure of Penny Hughes, the former Coca-Cola executive who joined the business immediately before its initial public offering a year and a half ago.
Mrs Hughes’ departure following an investment by Mr Stroll was first reported by the Financial Times on Thursday.
Mr Stroll’s consortium, which includes business figures such as Anthony Bamford, will issue £55.5m in short-term working capital to Aston, to help the group.
The company will delay investment into a suite of electric vehicles — which had been expected from 2022 — until after 2025, and has pushed back the release of its Ferrari-rival supercar until 2022.
The DBX, the group’s first sport utility vehicle, will still begin production in the second quarter of this year.