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Aston Martin<\/strong> is fighting for its independence. The luxury car manufacturer, headed by Canadian businessman Lawrence Stroll<\/strong><\/a>, has been courted by the Chinese car group Geely<\/strong> since last year. The latter took another 7.6%<\/strong> stake on Thursday and is trying to take control by becoming the majority shareholder.<\/p>\n <\/p>\n But for the moment, the Yew Tree<\/strong> consortium, of which Lawrence Stroll is chairman of the board, remains the largest shareholder with about 21%<\/strong> of the capital. Geely now holds about 17%<\/strong>, behind the Saudi fund Public Investment Fund (18%).<\/strong><\/a><\/p>\n <\/p>\n After this agreement, Geely, which already owns Volvo<\/strong>, has the “right to appoint a non-executive director to the board of Aston Martin”<\/em>, it said in a statement.<\/p>\n <\/p>\n “Geely Holding, which became a shareholder last year, sees tremendous long-term potential for Aston Martin”<\/em>, said Lawrence Stroll. “This is another example of how we are building Aston Martin into a desirable ultra-luxury brand.”<\/em><\/p>\n <\/p>\n “Our decision to increase our stake in Aston Martin reflects our confidence in the company’s growth prospects, its technologies and its management team”<\/em>, said Eric Li<\/strong>, Geely’s Chairman of the Board. He added that he “looks forward to exploring technology synergies and new growth opportunities to help this iconic brand reach its full potential.”<\/em><\/p>\n <\/p>\n <\/p>\n Aston Martin had announced in early May a narrowed first-quarter loss of 73.8 million pounds<\/strong><\/a>, down from 112 million pounds a year earlier. For Victoria Scholar<\/strong>, an analyst at Interactive Investor, Geely’s investment “is welcome at a time when there are growing concerns about the impact of the Brexit deal for carmakers.”<\/em><\/p>\n <\/p>\n Last Thursday, Aston Martin’s stock was soaring 13%<\/strong> to 261.80 pence by mid-session on the London Stock Exchange. Over the past five years, the share price has fallen sharply, but it has recovered significantly since the beginning of this year (+72%<\/strong>). Geely has decided to buy 42 million existing shares<\/strong> at a price of 335 pence per share, which is well above the current price. In addition, the Chinese group will invest 95 million pounds<\/strong> in cash to acquire 28 million new shares at the same price.<\/strong><\/p>\n <\/p>\n <\/p>\n Contractually, Geely has committed to not acquire more than 22% of the stock by August 1, 2024<\/strong>, unless it “makes a board-supported offer or a takeover bid for Aston Martin by a third-party company.”<\/em><\/p>\n <\/p>\n Geely’s appetite for European car brands is not slowing down. The group already owns Volvo, Lotus<\/a>, 10% of Mercedes-Benz, and is preparing to take 40% of the Renault Horse entity.<\/strong><\/p>\n <\/p>\n <\/p>\n Read also >Aston Martin : 2022 in the red, 2023 in pink<\/a><\/p>\n“Welcome investment”<\/h2>\n
Imminent acquisition?<\/h2>\n