Saudi Arabia’s Public Investment Fund (PIF) is in preliminary talks with British luxury carmaker Aston Martin to acquire a $245 million stake in the company.
The report by the British Financial Times – which made the initial disclosure – also revealed that Aston Martin is currently going through several financial problems, including an estimated net debt of $1.16 billion at the end of March. This includes an additional $158 million in interest payments in 2022.
The same source goes on to add that the manufacturer is currently trying to rebuild its capital in order to repay its debts and pursue its ambitious automotive projects for 2023 and the coming years, including the electrification of its vehicles. Projects that seem to be in question because of these recent disclosures.
A second British media, Autocar, had commented last Wednesday on the situation of Aston Martin, stating that the latter was seeking to “significantly strengthen its financial position while increasing investments”, while mentioning “potential investors linked to Saudi Arabia and the United States”.
Aston Martin’s stock market listing is also in line with the FT’s statement. The company’s shares lost nearly 8% at the end of June and Aston Martin is currently worth $620 million, which makes 2022 the manufacturer’s worst year to date.
However, these revelations go against Aston Martin’s executive chairman Lawrence Stroll, who earlier this year assured that he didn’t need money: “We don’t need the money at all. Let me be clear, in black and white: we don’t need money and car sales are on track”.
We will have to wait for further statements from the brand on these revelations and on the potential recovery of the company thanks to the Saudi investment.
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Featured Photo : © Aston Martin
