Aston Martin to sell stake in Formula One team / Photo: ALEX PLAVEVSKI - POOL/AFP
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Aston Martin to sell stake in Formula One team
Luxury carmaker Aston Martin Lagonda said Monday it planned to sell its minority stake in the Aston Martin Aramco Formula One team to help turn around its loss-making core business.
At the same time, Aston Martin's main shareholder, the Yew Tree Consortium, plans to raise its stake in the group to 33 percent, a statement said.
Aston Martin, the model beloved by fictional British spy James Bond, added that the combined action will increase the group's liquidity by more than £125 million ($162 million).
The consortium is led by Canadian Lawrence Stroll, whose son Lance Stroll drives for the Formula One team.
The company said that its long-term Formula One sponsorship deal will not be affected.
Aston Martin chief executive Adrian Hallmark said the new investment will "accelerate our progress into being a sustainably profitable company".
The company last month announced it would cut about five percent of its workforce as weak Chinese demand contributed to losses widening in 2024.
Hallmark began as chief executive late last year, replacing Italian national Amedeo Felisa.
The Briton is the fourth Aston boss in as many years, having stepped down as CEO of German-owned luxury carmaker Bentley.
By increasing its stake above 30 percent, the consortium would be required to make a bid for all of Aston Martin, under British takeover rules -- but Yew is asking for this to be waived.
"Exemptions have been granted in the past, yet it feels like a takeover would be a better outcome as it would mean the car company would be free to pursue a turnaround strategy out of the public spotlight," noted Russ Mould, investment director at AJ Bell.
"Time after time, Aston Martin has tapped investors for more money, yet the business is arguably going nowhere."
Mould added that offloading the stake in the Aston Martin Formula One team "screams of desperation".
G.Lomasney--NG
