The Saudi’s Share In Aston Martin Lagonda Worth 78 Million Pounds

Set to be the second biggest shareholder, the Saudi Arabia's Public Investment Fund (PIF) headed by Crown Prince Mohammed Bin Salman, acquires a stake in Aston Martin.

The 16.7 percent share PIF is buying is worth GBP 78 million (RM 414,510,806), and will give it the right to have two board members in Aston Martin Lagonda Holdings.

While this is part of PIF’s larger plan to raise GBP 653 million (RM 3,470,199,438), Aston also plans to raise GBP 575 million (RM 3,055,560,638) by way of a share’s rights issue.

Yew Tree’s chairman, Lawrence Stroll will remain the biggest investor, but its stake will fall from 22 percent to around 18.3 percent under the plans.

As for the British auto firm's current second-biggest shareholder, German carmaker Mercedes-Benz, will own about 9.7 percent.

Notably, Aston has had a bumpy ride since its stock market listing in late 2018, and currently, its shares have fallen nearly 68 percent so far.

Therefore, half of the new investment raised will be allocated to lessen Aston Martin's hefty debt and also boost its balance sheet.

Whereas the rest of the investment will be invested in new line-ups, with plans to launch the company’s first battery electric vehicle in 2025.

According to Stroll, the purchase and investment from Saudi's PIF is a game changer for Aston Martin Lagonda.

He concluded, "The announcement marks the latest success in the evolution of Aston Martin, the restoration of the business and balance sheet we inherited, and the acceleration of our long-term growth potential."