Aston Martin Lagonda Global Holdings PLC (LSE:AML) is set to raise over £125 million through a proposed investment by executive chairman Lawrence Stroll's Yew Tree consortium and sell its minority investment in the Aston Martin Aramco Formula One team.
Raising £52.5 million, Yew Tree has agreed to subscribe to new ordinary shares at 70p per share, representing a 7% premium to the closing price at the end of last week, with the 75 million new shares increasing the consortium’s stake to around 33%.
The consortium has also indicated an interest in increasing its stake to 35%, subject to shareholder approval, and will seek a waiver and shareholder approval to avoid a mandatory offer required when shreholdings exceed 30%.
Aston Martin said it plans to sell its minority stake in the Formula One team, which it expects to exceed the current book value of £74 million.
Stroll said the proposed investment "further underscores my conviction in this extraordinary brand, and commitment to ensuring Aston Martin has the strongest possible platform for creating long-term value while reducing equity dilution via this premium subscription".
CEO Adrian Hallmark said strengthening the balance sheet "provides additional headroom to support our future product innovation and business transformation activities.”
Aston Martin also confirmed that trading in the first quarter of 2025 remained in line with previous guidance, with the company expecting performance to improve in the second half of the year, especially in the final quarter.