Saudi Sovereign Wealth Fund PIF to Become Major Shareholder of Bond Car Aston Martin

Planning to Secure 20% Stake with 200 Million Pound Investment

[Photo by Reuters Yonhap News]

[Asia Economy Reporter Park Byung-hee] Saudi Arabia's sovereign wealth fund, PIF, is set to become the major shareholder of Aston Martin, famous for the 'Bond car.'

According to major foreign media on the 14th (local time), PIF will invest about ?200 million (approximately 311.988 billion KRW) in Aston Martin, securing close to a 20% stake and also taking seats on the board of directors. PIF has been steadily investing in automobile companies recently. It currently holds shares in the US electric vehicle company Lucid and another British luxury car brand, McLaren.

In addition to the PIF investment, Aston Martin plans to raise a total of ?500 million through a rights issue.

Aston Martin is planning a minimum ?300 million rights issue. A company official explained that the scale of the rights issue could be significantly larger and that the size will be decided by the board of directors. It is also reported that Lawrence Stroll, chairman of Aston Martin's board, and his investment company Yew Tree Investment Consortium have agreed to participate in the rights issue.

According to sources, Aston Martin's board will discuss this fundraising agenda on the afternoon of the same day and is expected to make an official announcement as early as the 15th.

Chinese automaker Geely has also recently expressed its intention to invest in Aston Martin, and the Aston Martin board is expected to discuss this matter as well, according to sources.

Geely is known to have proposed collaboration with brands owned by Geely Auto, such as Lotus and Volvo, along with its equity investment. Geely is a shareholder of Mercedes-Benz, which holds shares in Aston Martin.

Aston Martin plans to reduce its debt through this capital raising. As of the end of the first quarter this year, Aston Martin's net debt amounted to ?957 million. Previously, Aston Martin announced that it expects to pay ?130 million in debt interest this year.

Aston Martin is also considering raising additional funds for the development of next-generation sports cars and electric vehicle models. The company aims to unveil its first electric sports car in 2025.

Aston Martin has recently been strengthening its relationship with Saudi Arabia. Earlier this year, Saudi state-owned oil company Aramco became the official partner of the Aston Martin Formula One team.

This content was produced with the assistance of AI translation services.