Tuesday, September 27, 2022
HomeSportF1 team sells shares to controversial Saudis behind Newcastle takeover and LIV...

F1 team sells shares to controversial Saudis behind Newcastle takeover and LIV Golf


Aston Martin has accepted the backing of controversial Newcastle United owners Saudi Arabian Public Investment Fund (PIF). The Saudi backers will secure a 16.7 per cent stake in the iconic car manufacturer to become its second largest stakeholder. 

Aston Martin said it plans to raise £653 million through the investment. It is understood the Saudi’s will buy £78million worth of shares as part of the new deal and will also invest £575million over a seperate rights issue.

Aston Martin boss Lawrence Stroll claimed the new partnership will help accelerate the company’s “long-term growth”. However, Stroll’s own business, Yew Tree Holdings, will still remain the largest shareholder of the manufacturer.

Stroll said: “Today’s announcement marks the latest success in the evolution of Aston Martin, the restoration of the business and balance sheet we inherited, and the acceleration of our long-term growth potential.”

 

Around half of the investment will go towards repaying Aston Martin’s mounting debts. The manufacturer announced debt of almost £1billion at the end of March as the company continues to struggle. 

However, the rest of the deal will be used to accelerate future expenditure. It comes at a time when their F1 team is struggling under the new rules package with the team currently lying ninth, just in front of Williams. 

Stroll added: “Aston Martin’s return to the pinnacle of motorsport with the F1 team has also ushered in a new era for our iconic British brand.

“Our focus on building brand equity and unleashing the potential of Aston Martin is already delivering growing demand from a new generation of customers, with more than 60 per cent new to the brand in 2021.”



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