Billionaire Lawrence Stroll eyeing big stake in Aston Martin
Just a couple of month’s ago, Aston Martin’s biggest investor, Strategic European Investment Group, allegedly acquired an additional 3% stake in the company
According to reports, Canadian billionaire Lawrence Stroll, father of Formula One driver Lance Stroll and owner of Formula One team Racing Point, is now heading up a consortium in order to take a ‘major shareholding’ in the British company.
Stroll is alleged to prepare a bid for a major stake in Aston Martin. Aston Martin’s shares have been slumping since its flotation in October 2018 because of the sales failed to meet expectations.
Stroll is reportedly heading up a consortium in order to take a “major shareholding” in the British company. According to reports, racing Point could be rebranded as Aston Martin if Stroll succeeds in taking a controlling stake.
The carmaker’s shares were reportedly up by 17% at 5.88 pounds ($7.54) at 1414 GMT, which valued the business at about 1.3 billion pounds, but the brand is still far below their IPO (initial public offering) price of 19 pounds.
However, the car industry amalgamates through deals like the Peugeot-Fiat merger, Aston refused to do so and said it does not need to belong to a bigger automotive group, the brand simply pointed to the success of stand-alone rival Ferrari.
But the sale of a stake is said to help boost the company’s prospects. In the month of August, Aston’s biggest investor, Strategic European Investment Group, allegedly acquired an additional 3% stake in the company.
Just a month after, Aston raised $150 million in debt at 12% interest, increasing its borrowing costs, to support its balance sheet to launch its DBX sports utility vehicle next year.
The company, however, hopes to double its sales with its first SUV, which will enter production in 2020, particularly they are planning to attract more female buyers to the brand this time.