Chinese join Saudi Arabia as leading investors in Aston Martin

The Chinese have joined Saudi Arabia as lead investors in automaker Aston Martin as it tried to bolster its finances.

Automaker Geely took a nearly 8 percent stake in James Bond’s favorite brand, becoming the fifth largest investor.

And Saudi Arabia’s public investment fund now owns 18.7 percent of the company and is the second largest shareholder.

The investments were part of a £654 million fundraising effort to strengthen Aston’s balance sheet and support investment in hybrid and electric models.

Deeply discounted shares were sold to existing investors, 94 percent of whom bought into the offering. Mercedes-Benz and the American asset manager Invesco also took part.

The money will pay off debt and fill a war chest as Aston faces a ‘challenging business environment’ – war in Ukraine, lockdowns in China and supply chain disruption.

It will also invest in future models, including the Valhalla hybrid supercar. Aston was trading at 1900 pence in London four years ago, but its stock fell 4.7 percent or 5.95 pence to 119.5 pence.

Aston executive chairman Lawrence Stroll said he was “delighted”, adding: “This transformational capital increase significantly strengthens our financial position and improves our path.”

Geely is China’s largest automaker and owns European brands, including Swedish Volvo and Norfolk-based Lotus. The offer to invest in Aston this summer was turned down, but CEO Daniel Donghui said it will provide support with its technological capabilities.

The Saudi fund is controlled by Crown Prince Mohammed bin Salman and is known for its controversial takeover of Newcastle United football club. It also has a stake in British supercar maker and F1 team owner McLaren Group.