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British luxury carmaker Aston Martin is looking for new investors

The company has a market capitalisation of over $1.6 billion currently but has seen its shares slump over the recent past as its sales have missed expectations.

Published: 17th December 2019 06:25 AM  |   Last Updated: 17th December 2019 12:10 PM   |  A+A-

The iconic carmaker’s sales have been on a steady dive in recent times.

By Express News Service

Troubled British luxury carmaker Aston Martin has confirmed that it is in early-stage talks with potential investors in order to build a “long term relationship”, which may involve an equity investment. According to a statement from the 106-year old firm, it is currently reviewing its funding requirements and various options.

Several reports had begun appearing in media outlets over the past few weeks that the automaker has held meetings with potential investors who include Canadian billionaire Lawrence Stroll and others from the Middle East, India and China.

Other reports had also said that Stroll, who owns the Formula One team Racing Point, is preparing to buy a major stake in Aston Martin. The company has a market capitalisation of over $1.6 billion currently but has seen its shares slump over the recent past as its sales have missed expectations.

“The company confirms that is reviewing its funding requirements and various funding options,” the automaker’s statement read, going on to say that it is “engaged in early-stage discussions with potential strategic investors in relation to building longer term relationships which may or may not involve an equity investment”.

“A further announcement will be made as and when appropriate,” it concluded.
If the carmaker is picked up by Stroll, the development may well lead to Aston’s existing interests in Formula 1 change. Aston Martin is currently the title sponsor of the Red Bull Racing F1 team, but if Stroll does make a significant investment, this may well change with Racing Point becoming fully sponsored by Aston Martin.

Experts say that Aston Martin may gain with a stake sale since it could well help boost flagging sales, which pushed it into a third-quarter loss this year. Its hopes currently rest on making a success of its first SUV, which is slated to begin production next year.

Aston Martin’s search for an investor is part of a long series of deals consolidating the global automobile sector, as new technology brings with it substantial capital expenditure requirements.



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