Saudi Arabia's sovereign wealth fund will become the second-largest shareholder of Aston Martin with a nearly 17% stake in a capital raise aimed at paying off debt and shoring up its business, the British luxury carmaker said today.
The company is faced with high debt, a torrid stock fall and a struggling Formula One team.
It said it planned to raise £653m through PIF's £78m investment and a separate rights issue of £575m.
The Saudi fund will own 16.7% stake in Aston Martin, behind the 18.3% holding by Chairman Lawrence Stroll's Yew Tree will have after the rights issue, and will be entitled to two board seats at the carmaker.
Current second-largest shareholder, German carmaker Mercedes-Benz, will own about 9.7% after the capital increase. The firm was looking to lift it stake to up to 20% by 2023.
Frequently featured in the James Bond movie franchise, Aston Martin has had a bumpy ride since its initial public offering in late 2018.
Its London-listed shares have fallen nearly 73% so far this year. They jumped 10% this morning after hitting a record low earlier.
Half of the new capital will be used to repay debt, Aston Martin said. The company had a debt of £957m at the end of March. It will also serve to accelerate future capital expenditure.
The Financial Times reported this week that Aston Martin was closing in on a deal to raise over £500m, by bringing in the Saudi fund as a major shareholder.
PIF, which owns stakes in electric carmaker Lucid and British supercar group McLaren, did not immediately respond to a Reuters' request for comment.
Separately, Aston Martin also reported wholesale volumes of 2,676 in the first half of 2022, down from 2,901 a year ago.
It expects to sell more than 6,660 units for the full-year.
