Chinese automotive group Geely has announced that it has acquired a 7.6 per cent share in Aston Martin.
Geely – full name Zhejiang Geely Holding Group – is China’s largest privately-owned automotive group, and owns firms such as Volvo, Lotus, Polestar and the London Electric Vehicle Company, which produces the electrified London cab.
The brand is now expanding its portfolio with the 7.6 per cent stake in Aston Martin Lagonda and completes the British brand’s £654m equity capital raise.
Launched in July, this fresh investment will help to fund a number of new models, including the Valhalla supercar and further versions of the DBX SUV.
Daniel Donghui Li, Geely Holding Group CEO said: “We are delighted to announce our investment in Aston Martin and believe that with our well-established track record and technology offerings, Geely Holding can contribute to Aston Martin’s future success.
“We look forward to exploring potential opportunities to engage and collaborate with Aston Martin as it continues to execute its strategy to achieve long term, sustainable growth and increased profitability.”
Aston Martin had previously rejected a cash offer from Geely, which came from a consortium made up of the Chinese firm and InvestIndustrial, that amounted to a £1.3bn investment.
In a notice released on the London Stock Exchange, where Aston Martin Lagonda is listed, Lawrence Stroll, executive chairman of the sports car brand said: “I am delighted that we have successfully completed this transformational capital raise which significantly strengthens our financial position and enhances our pathway to becoming sustainably free cash flow positive.
“I would like to thank our existing shareholders for their continued support in reaching this important milestone. The Yew Tree Consortium’s shareholding now stands at 19 per cent following its full participation in the rights issue and additional investment through the capital raise. I would also like to thank Mercedes-Benz for their investment and the strong long-term partnership we have created.
“In addition, I would like to thank The Public Investment Fund, one of the leading global investment funds, which has become a new anchor shareholder with a 18.7 per cent stake in the company. Finally, I would like to welcome Geely Holding, who have today announced that they have become a shareholder.”