Aston Martin (LON:AML) Plans £635 Million Fund Raising With Saudi PIF Investment - Bloomberg
Just five months after declaring Aston Martin Lagonda Global Holdings Plc had plenty of cash, Chairman Lawrence Stroll announced plans to raise £653 million ($772 million) to pare debt and free up money for future product.
The carmaker intends to issue 23.3 million new shares to the Saudi Public Investment Fund at £3.35 a share, giving it a 17% stake, Aston said in a filing. The company will also undertake a rights issue with the PIF, Stroll’s Yew Tree Consortium and Mercedes-Benz AG investing a combined £335 million.
“With this capital raise, we are able to remove the significant overhang on our business,” Stroll said on a conference call. As much as half of the proceeds will be used to repay debt and reduce interest costs, with the rest providing a cushion amid the war in Ukraine, Covid-19 lockdowns in China and supply chain and logistics challenges.
The moves mark a stark reversal from Stroll’s position earlier this year, when he told reporters: “Let me be crystal-clear, black-and-white: we do not need money.” On Friday, he said the Aston’s progress had been slowed by legacy issues inherited from previous management and the downturn in China.
Aston shares climbed as much as 28% in London trading, their biggest intraday jump since May 2020.
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