Aston Martin seem to be doing well on the stock market in addition to their impressive performance in Formula 1, as their recent rise in stock shows.
Aston Martin’s stock popped nearly 22% on Thursday, after the luxury carmaker announced a £234-Million investment by China’s Geely, that will see the automotive firm become its third-largest shareholder.
Geely will acquire about 42 million ordinary shares from Chairman Lawrence Stroll’s Yew Tree, which is currently the Aston Martin’s largest stakeholder, at 335 pence apiece and subscribe for another 28 million shares at the same price.
The fresh issue will garner about £95-Million in cash proceeds for the British firm. Aston Martin shares, which closed at 231.2 pence on Wednesday, were trading up to 279.4 pence at 0727 GMT.
Geely investment opens the road into Chinese market growth
For Aston Martin, the preferred ride of fictional secret agent James Bond which has gone bankrupt seven times in its history, the investment paves the way to secure its long-term future and allows the century-old firm to lower its debt.
“They offer us a deep understanding of the key strategic growth market that China represents, as well as the opportunity to access their range of technologies and components,” Stroll said in a statement.
Geely, which owns multiple brands including British sportscar maker Lotus, Zeekr, Volvo and – via a joint venture with Volvo – Polestar, had acquired a 7.6% stake in the Formula 1 team sponsor in September last year.
That came after the carmaker rejected Italian investment group Investindustrial and Geely’s proposed funds of up to £1.3-Billion ($1.64-Billion) in July.
“Our decision to increase our shareholding in Aston Martin reflects our confidence in the company’s growth prospects, its technologies and its management team,” said Geely Chairman Eric Li.