Aston Martin has a new important stockholder. Based on a 3-year agreement worth 286 million UK pounds, Daimler’s share of Aston Martin ownership is increasing from 2.6% to 20%. With this investment the group that owns Mercedes–Benz becomes the 2nd largest stockholder behind Lawrence Stroll (25%). The Canadian billionaire first moved to save the British carmaker. Daimler’s growing presence proves that the need is the same: to support Aston Martin’s recovery. That being said, there is still a long way to go, as proven by the latest bundle of bonds emitted.
Daimler ups its share to 20%
As explained by Daimler itself, the move isn’t just financially motivated, but rather answers to an industrial strategy. The Germans will allow Aston martin to use their technology to up the carmaker’s offering of electric vehicles. “We updated our plans – commented the CEO Tobias Moers -, taking advantage of the partnership. We aim at growing significantly and expanding our margins in the medium term. Not just by expanding the product line, but by also supplying them with operational excellence in all areas of the organization”.
A long way to go
While Andrea Bonomi, owner of Investindustrial, decided to bring its ownership in Aston Martin to 0 (he used to have 37.5% in 2012), the latest bonds showcase the brand’s difficulties. The 850 million pounds of bonds placed on the market had a rate of 10.5%, while expectations from management were of 9%. The group’s financial situation (which is already in red), is further aggravated by over 750 million worth of debt and the rating given by agencies is on the lowest level of the scale used.
Image taken from astonmartin.com
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