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Aston Martin to Sell Stake to Formula One Billionaire

  • February 3, 2020
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Aston Martin secured a £500m lifeline to restore the balance sheet and help build a new sport-utility vehicle after agreeing to sell a minority stake to billionaire Lawrence Stroll. 

The deal agreed gives the U.K. luxury carmaker much-needed breathing space as it looks to get back in track following a turbulent start to life as a public company. 

Aston Martin needs funds to ease debts and start building the DBX, its first-ever SUV, which CEO, Andy Palmer is banking on to sell in higher volumes than the stylish sports cars made famous by the James Bond movies. 

The Canadian investor will become executive chairman, according to a statement.

“This fund-raise brings down our leverage and substantially supports investment in new products,” Palmer said in an interview. The company no longer needs to draw down on a 100 million-pound, high-interest loan, he added.

Stroll, a Canadian investor who owns a Formula One racing team, won the backing of Aston Martin’s board. He edged out rival suitor Geely, which also sought to invest in the sports-car maker. Stroll’s consortium will pay £182m for a 16.7% stake, before contributing to a rights issue supported by major shareholders to raise a further £318m.

Stroll, 60, made his fortune building and selling two fashion brands: He and his partner, Silas Chou, took Tommy Hilfiger public in 1992 and later sold it to private-equity buyers. In 2011, they listed the Michael Kors brand, eight years after acquiring majority control. Chou is also part of Stroll’s Aston Martin consortium.

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