Aston Martin to sell stake in Formula One team

Aston Martin is to sell its £74m minority investment in the Aston Martin Aramco Formula One team as part of its plans to increase the luxury car maker’s liquidity.

The consortium led by the group’s executive chairman Lawrence Stroll is to commit a further £52.5m into the business. The investment is priced at a 7% premium to Friday’s closing share price, and takes the consortium’s stake up to one-third of the company.

Aston Martin has a long-term F1 sponsorship agreement with the racing team, which was extended last year, which means the brand “will remain present and competing at the pinnacle of motorsport for many years to come”.

Stroll, who leads the Yew Tree Consortium, said: “Since 2020, my Yew Tree Consortium partners and I have invested around £600m into the company.

“This proposed investment further underscores my conviction in this extraordinary brand, and commitment to ensuring Aston Martin has the strongest possible platform for creating long-term value while reducing equity dilution via this premium subscription, which should greatly reassure shareholders, as I again increase my long-term ownership in the company.”

Adrian Hallmark, who became chief executive of Aston Martin last September, said the consortium’s financing “underlines their immense confidence in our team and the future of the company”.

He added: “We are committed to demonstrating that our strategy delivers long-term growth. By strengthening the balance sheet, this investment provides additional headroom to support our future product innovation and business transformation activities, which combined, will accelerate our progress into being a sustainably profitable company.”