Aston Martin raises £216 million from investors to reduce debt
Aston Martin raises £216 million from investors to reduce debt
- Some 58.2 million shares in Aston Martin were picked up by investors
- Of this, just over 1 million by retail investors at £4 million
Aston Martin has raised £216 million from shareholders to reduce its mountain of debt following yesterday’s cash call.
The company said some 58.2 million new shares have been subscribed at 371 pence per share, representing a 6.2 percent discount to the stock’s closing price on Monday.
Of these, just over 1 million were snapped up by private investors for £4 million.
Cash call: Aston Martin received £4 million backing from private investors
Lawrence Stroll, Executive Chairman of Aston Martin, said: ‘This successful share placement builds on the actions we have taken to create shareholder value.
“Supported by the company’s improved financial position, the placement will enable us to meaningfully wind down the balance sheet and accelerate our journey towards sustainable free cash flow.
“The huge support from our largest shareholders together with strong interest from institutional and private investors also demonstrates the continued confidence in Aston Martin and our future direction.”
Yesterday, the company announced that the share placement had already raised £115 million of its total from major shareholders.
The largest investor, the Yew Tree consortium, led by executive chairman and Canadian billionaire Lawrence Stroll, agreed to provide £44 million in cash.
Today, Aston Martin said Yew Tree has agreed to subscribe for a further 15.7 million shares, bringing the total cash injection to around £58.2 million.
The Saudi public investment fund, meanwhile, raised £37 million, with Geely providing £15 million and German giant Mercedes-Benz providing a further £19 million.
Aston Martin shares fell 4.3 percent to 378.40p in morning trading on Tuesday.