Aston Martin Global Holdings Plc is making a last-ditch effort to raise new money, billionaire Lawrence said Stroll is the closest to promising a stake in the struggling British luxury car maker. The Canadian investor and owner of Formula One team Racing Point is in advanced discussions about to inject about 200 million pounds ($260 million) as part of the carmaker’s capital increase, according to one of the people familiar with the matter.
People familiar with the matter spoke on condition of anonymity because the talks were not made public.
In addition, Chinese tycoon Li Shufu’s Geely Group has held preliminary discussions about a possible investment in Aston Martin, people familiar with the matter said. Geely controls Sweden’s Volvo, Britain’s Lotus, and a minority stake in Daimler. People familiar with the matter said Geely was mainly interested in technology-sharing deals that could benefit businesses such as Lutes.
Aston Martin’s earnings warning last week highlighted the car maker’s urgent need to get new investors to help it reduce its debt and finance the production of the DBX sport utility vehicle. The $189,000 DBX is at the heart of Aston Martin’s revamp plan to double annual production to 14,000 vehicles by 2023. Aston Martin has received 1,800 orders for the model, meeting the terms of its subsequent $100million loan.
“We are still in discussions with potential strategic investors to build longer-term relationships that may or may not involve equity investments,” Aston Martin said in an emailed statement over the weekend.
Representatives for Racing Point did not immediately respond to a request for comment outside of business hours. A Geely spokesman could not be reached for comment.
Talks with various investors may not lead to a deal, and the size of any equity sale could change, according to people familiar with the matter.
Aston Martin’s shares have fallen more than 60% in the past 12 months. Its sterling bonds jumped on Friday after the Financial Times reported that Geely might invest. Sky News reported over the weekend that Chinese battery maker Ningder Could take a stake in Aston Martin.