LONDON, UK: Aston Martin Lagonda Global Holdings plc, the British luxury carmaker, has announced a significant investment from Geely Holding, China’s leading independent automotive group, as part of a new partnership that aims to support Aston Martin’s growth and vision to be the world’s most desirable ultra-luxury British performance brand.

Geely has committed approximately £234 million to become the third largest shareholder in Aston Martin, acquiring around 42 million existing ordinary shares from the Yew Tree Consortium, a group of investors led by Canadian billionaire Lawrence Stroll, at 335 pence per share, and subscribing for around 28 million new shares at the same price.

The Yew Tree Consortium will remain as the largest shareholder in Aston Martin, with a stake of around 21%, while Geely’s aggregate shareholding will increase to around 17%. Aston Martin Lagonda will receive approximately £95 million in cash from the subscription of the new shares.

As part of the new relationship agreement, Geely will have the right to appoint a non-executive director to the Aston Martin board of directors. Geely said it was impressed by Aston Martin’s product portfolio, brand heritage and potential, and that it looked forward to working with Aston Martin’s management team and other shareholders to enhance its performance and competitiveness.

Aston Martin said it welcomed Geely as a strategic partner and a long-term investor, and that it expected to benefit from Geely’s expertise and experience in the global automotive industry. Aston Martin said it remained committed to its strategy of becoming a leading player in the ultra-luxury segment, with a focus on electrification, sustainability and innovation.

Commenting on this announcement, Lawrence Stroll, Executive Chairman of the Board, said: “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. 

They offer us a deep understanding of the key strategic growth market that China represents, as well as the opportunity to access their range of technologies and components. 

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.

“It is a further example of how we are successfully building Aston Martin into the most desirable ultra-luxury British performance brand through a combination of our own product development, technology and design and also drawing on the skills and capabilities of major international companies that are both strategic partners and shareholders.

“I, and each member of my consortium, remain fully committed to, and excited by, the future success of Aston Martin.  We remain on track to deliver our strategic objectives and starting this month we will bring to market our new portfolio of game-changing sportscars.  We remain the largest shareholders in the Company and continue to be confident that we will build a business of great value for all of our shareholders.”

Eric Li, Geely Holding Group Chairman said: “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 achieve its full potential.”

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