Sale will allow the brand to seek profitability aimed slowing sales in key market, one being China.
Aston Martin said Monday it planned to sell its minority stake its Formula One team to help turn around its loss-making core business.
At the same time, Aston Martin’s main shareholder, the Yew Tree Consortium, plans to raise its stake in the group to 33%, a statement said.
Aston Martin added that the combined action will increase the group’s liquidity by more than £125-million.
Cutting to stay in the black
The consortium is led by Canadian Lawrence Stroll and added that its long-term Formula One sponsorship deal will not be affected.
Aston Martin chief executive Adrian Hallmark said the new investment will “accelerate our progress into being a sustainably profitable company”.
The company last month announced it would cut about five percent of its workforce as weak Chinese demand contributed to losses widening in 2024.
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He is the fourth Aston boss in as many years, having stepped down as CEO of Bentley.
By increasing its stake above 30%, the consortium would be required to make a bid for all of Aston Martin, under British takeover rules, but Yew is asking for this to be waived.
“Exemptions have been granted in the past, yet it feels like a takeover would be a better outcome as it would mean the car company would be free to pursue a turnaround strategy out of the public spotlight,” noted Russ Mould, investment director at AJ Bell.
“Time after time, Aston Martin has tapped investors for more money, yet the business is arguably going nowhere.”
Mould added that offloading the stake in the Aston Martin Formula One team “screams of desperation”.
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