"Financial Times"Saudi Arabia wants to invest in luxury car company

The Financial Times, citing sources, said the Saudi Arabian Public Investment Fund is working to invest in a luxury car company.

Reported Financial Times Quoting 4 sources, “The Saudi Arabian Public Investment Fund is in talks with Aston Martin to acquire a stake in the business as the luxury car maker seeks to raise additional financial resources for its next vehicle group.”

The Saudi Public Investment Fund, which already owns property in Lucid Motors and McLaren, is in talks to acquire new shares in the business, which could be worth as much as £200 million, sources told the newspaper, noting that “negotiations are on early stage” as “Aston Martin is facing the challenge of financing its next generation of sports cars and its first step towards electric vehicles at a time when the company is heavily indebted and not generating net cash” and the company does not expect to start making money until 2023 . According to the Financial Times, one of her priorities is to start repaying a high-interest portion of her debt.

The newspaper noted that the group had a net debt of £957m at the end of March and was expected to pay interest on the debt of around £130m this year. , Aston Martin is looking for other sources of funding for its next generation of vehicles, which are essential for the company’s survival.
According to the Financial Times, the discussions “represent a reflection of the company’s stated position in February, when president and owner Lawrence Stroll insisted the company did not need additional funding, saying at the time, ‘Let me be completely clear…in black and white. … We don’t need money,” and Autocar magazine first reported on Aston’s fundraising talks.

Aston Martin shares fell 18% last Thursday after Autocar’s report and the company declined to comment, while the State Investment Fund did not respond to a newspaper request for comment.

And the Financial Times explained that “Aston Martin already has a relationship with the Kingdom after the deal with Aramco to rename the Formula 1 team, as owner Lawrence Stroll, who invested in the company in January 2020, tried to stage a business upheaval by freeing up exhibition halls from excess cars and trying to align the offer with real customer demand to help rebuild the luxury brand’s reputation.”

Stroll revealed last month that Aston Martin had rejected Audi’s approach to its F1 team’s entry into the sport from 2026, and Stroll, whose son Lance races with the team, told analysts last month he was “very happy with our relationship.” with Mercedes. .

Source: Financial Times.

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