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Aston Martin still leaves options open as Saudi Arabia considers possible £200m investment | Business newsletter



Aston Martin said it was looking at multiple funding options after it was reported that Saudi Arabia’s sovereign wealth fund was preparing a possible investment of hundreds of millions of pounds.

Responding to reports, the luxury carmaker said it was keeping all “funding options under consideration”, amid uncertainty over the company’s future.

Shares of Aston Martin fell 14% on the news.

In 2020, Aston Martin lost £110 million when it became a British company burn cash and fight for sales after COVID-19 The crisis took hold, exacerbating the difficult start to life it had as a listed company in 2018.

The company has £1.2 billion in existing loans, bank drafts and bonds on its balance sheet.

“Aston Martin Lagonda noted recent movements in stock prices and media speculation regarding potential fundraising efforts,” the company said in a statement Thursday.

Aston Martin said: “Orders are strong and continue to grow in recent months, with sports cars sold out in 2023 and orders for the DBX 40% higher than the previous year. ,” said Aston Martin.

The DBX is the company’s new SUV, whose popularity has helped cut some of Aston Martin’s losses last year.

“The company regularly reviews its funding options,” it said. “Any funding option, if explored and implemented, will support and accelerate the company’s future growth.”

Aston Martin is considering selling a large amount of equity in exchange for up to £200 million, according to trade publication Autocar.

Autocar said the two top businesses vying to buy into the company are a Saudi company with links to the country’s sovereign wealth fund and an investment fund based on the east coast. west of America.

Saudi Aramco, one of the world’s largest oil and gas companies, currently sponsors Aston Martin’s Formula 1 team.

Aston Martin is even considering giving up a seat on the board in exchange for an investment, according to the magazine.



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