Aston Martin Lagonda Global Holdings PLC (LON:AML) has confirmed a £536mln cash injection by a consortium headed by Canadian tycoon Lawrence Stroll after the plans were approved at a meeting on Monday.
In an announcement after market close yesterday, the supercar maker said the Stroll-led Yew Tree Consortium will receive a 25% stake in the firm for £171mln through a placing at 225p per share as part of their total investment of £262mln, while the rest of the money will be raised through a subsequent rights issue.
Stroll will take over as executive chairman of the firm from 20 April, while Aston will also join the billionaire’s Racing Point F1 team, which will change its name to Aston Martin F1 for the 2021 season.
“This is a very significant capital raise of £536m - due to be made by my consortium and other shareholders at a very challenging time. This gives the necessary stability to reset the business for its long-term future”, Stroll said in a statement.
Meanwhile, amid the unfolding coronavirus pandemic, Aston said it had temporarily suspended production at its Gaydon and St Athan facilities, while its staff were now working from and in the process of being furloughed during the stoppage.
The firm is also planning to issue a secondary prospectus later today or tomorrow to provide additional clarity on its working capital position.
President and chief executive Andy Palmer said the company’s first SUV and DBX models will “start production shortly after returning from the [coronavirus] enforced shutdown, with an order book now exceeding 2,000 units and deliveries still planned for summer 2020”.
“We also have a firm forward order book for our core sports cars, which includes strong initial orders for our new Vantage Roadster. Our all new V6 hybrid powertrain is already well advanced in development and will enter production with the Valhalla supercar, followed by the Vanquish mid-engined car in the mid-term", he added.
Shares in Aston Martin were 9.6% lower at 204.5p in early trading on Tuesday.