Chinese automaker Geely announced on May 18 that it had increased its stake in British luxury automaker Aston Martin to around 17% under a new partnership deal.
Geely’s move to raise its ownership comes as its chairman, and founder voiced confidence in Aston Martin’s growth prospects.
“Our decision to increase our shareholding in Aston Martin reflects our confidence in the company’s growth prospects, its technologies and its management team. Since first acquiring our minority holding last September, we have worked collaboratively with executive chairman Lawrence Stroll and his colleagues and now look forward to exploring joint technology synergies and new growth opportunities to help this iconic automotive brand to achieve its full potential.”
Geely Holding Group Chairman Eric Li
Geely becomes Aston Martin’s third-largest shareholder
Financial Times reported that Geely invested £234 million ( $290) to secure both current and new stakes, advancing as the British luxury sports automaker’s third-largest shareholder.
The largest Chinese auto group acquired 42 million shares from Stroll’s consortium at 335 pence each. It also subscribed for additional 28 million shares at the same price, securing approximately £95 million in cash for the British firm.
Under the new long-term partnership deal, Geely commits to supply technology and parts to Aston Martin, the report said.
In addition, it will also aid Aston Martin in comprehending China’s key strategic growth market, as noted by the company’s Executive Chairman of the Board.
“This announcement is a further significant step towards delivering our ambition for Aston Martin. Geely Holding, who initially became a shareholder last year, sees tremendous potential for Aston Martin’s long-term growth and success. Geely can offer us a deep understanding of the key strategic growth market of China as well as the opportunity to access their range of technologies. Geely share our vision for Aston Martin and want to be a more significant shareholder. This transaction enables the creation of a long-term partnership with Geely – a relationship that I believe will bring very significant value for all of our shareholders over time.”
Executive Chairman of the Board Lawrence Stroll
It is also worth noting that the new investment marks a more than doubled increase in Geely’s stake from just 7.6% in September 2022 to 17%.
Geely can now appoint a Non-Executive Director to the Martin’srtin Board of Directors as a shareholder representative and a second person as an observer.
See Also:
- Aston Martin to unveil a refreshed lineup of EVs in the summer
- Geely profits rose 9% in 2022 after 4-year decline
- UK’s electric-vehicle revolution stalls: Industry experts say Britain is falling short of US and Europe in EV race
- Geely’s Lotus is going public via SPAC at a valuation of $5.4 billion
- Geely’s Zeekr will launch in Europe with 001 EV in 2023
Reuters reports that the newly accumulated funds can aid Aston Martin in its plans to launch its next-gen sports cars in Q3 2023.
Aston Martin’s shares surged almost 25% on Thursday after the announcement.
($1 = 0.7923 pounds)
