01/04/2025
NEWS STORY
Car manufacturer Aston Martin is to sell its stake in the F1 team that bears its name.
The iconic car manufacturer has been hard hit in recent times by a number of factors, to the extent that staff have been laid off and two successive profit warnings have been issued to investors.
On top of falling demand, supply chain issues have led to delivery delays, while, like many, the company is fearing the damage to be done by the upcoming import tariffs in the US.
The newly announced move will see Aston Martin raise more than £125m through funding and the sale of its stake in the F1 team - currently valued at around £74m - as it continues "benefiting from the growing success and popularity of Formula One".
In the move, Lawrence Stroll's Yew Tree consortium, which has already invested £600m, will invest a further £52.5m in 75 million shares at £0.70p per share, thereby increasing its holding from 27.7% to around 33%.
Yew Tree will seek a waiver from the rule that demands any entity owning more than 30% of a UK-listed company to make an offer to buy out the remaining shareholders.
"We are committed to demonstrating that our strategy delivers long-term growth," said Chief executive Adrian Hallmark. "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."
"I remain highly confident about the company's medium-term prospects having re-positioned the company as one of the most desirable ultra-luxury high performance automotive brands," added Stroll.
"The coming years will be pivotal in realising our vision and ambition. The company has invested significantly in its world-class portfolio of new core models, and Adrian Hallmark's appointment as CEO will further unlock the company's strong potential.
"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."