Chinese automotive firm fuels Aston Martin with £234m investment

Shares in luxury car manufacturer Aston Martin rose by nearly 25%, following a £234m investment made by shareholder Geely.

The Chinese car giant behind Volvo, Polestar and Lotus, has doubled its stake in Aston Martin to 17%, becoming the third-largest shareholder behind chairman Lawrence Stroll and Saudi Arabia’s Public Investment Fund and ahead of Mercedes-Benz.

The increased shareholding by China’s largest privately-owned automotive technology group, will form part of Geely Holding’s strategic investment portfolio, which includes long-term equity stakes in global automotive brands.

Geely will now appoint a non-exec to Aston Martin’s board and it has also agreed not to increase its holding to more than 22% until August 2024.

The deal has raised around £95m for the firm, after Geely acquired 42 million shares from chairman Lawrence Stroll’s Yew Tree at 335 pence each and subscribed for another 28 million shares at the same price.

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 to achieve its full potential.”

Lawrence Stroll, Executive Chairman of the Aston Martin 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.

“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.”