China’s Geely to double Aston Martin stake in £234 million deal

CHINA’S Geely Automobile Holdings will double its stake in Aston Martin Lagonda Global Holdings, becoming the UK sportscar maker’s third biggest shareholder in a transaction that will unlock £95 million (S$159 million) for the British sportscar maker.

As part of a £234 million transaction, Geely will acquire a 17 per cent stake in the company, purchasing 42 million shares from chairman Lawrence Stroll’s Yew Tree consortium along with 28 million new shares, Aston Martin said in a stock exchange filing. Geely will also get the right to appoint one director on Aston Martin’s board.

Aston Martin has perennially struggled with cash and roped in Saudi Arabia’s Public Investment Fund as a shareholder last year as Stroll looks to turn the carmaker around and pivot to battery-powered sports cars. Analysts have in the past said that Aston’s lack of scale and precarious cash balance made it vulnerable.

Bloomberg first reported in October 2022 that billionaire Li Shifu, who controls Geely, was looking to boost his stake in the carmaker to increase collaboration with the carmaker. The investment in Aston Martin deepens Geely’s vast footprint in Europe, where it controls Volvo Car and recently increased its stake in French carmaker Renault. BLOOMBERG