Aston Martin shares

Automaker Aston Martin has announced a massive fundraising programme in which it will sell a 16.7 per cent stake in the Public Investment Fund. This was reported by the British newspaper Financial Times.

As the newspaper notes, amid falling car sales resulting from the effects of the coronavirus pandemic, the company is "experiencing a significant increase in its debt burden", which stood at £957m as of March. To ease the financial burden the firm "will sell a 16.7% stake to the Saudi Arabia Sovereign Fund, which will join the company for £78m and gain two seats on the board of directors".

Furthermore, the firm intends to launch a large-scale additional share issue programme, which will be placed by subscription amongst the company's capital owners.

Through this programme, £335m will be raised through the acquisition of securities from Aston Martin by Public Investment Fund, German carmaker Mercedes-Benz and co-owner Lawrence Stroll's Yew Tree consortium, while another £318m will be raised from the sale of new shares to the remaining shareholders who have already agreed to the deal. In total the company will raise £653m, half of which will be used to pay off its liabilities to creditors.

Car maker Aston Martin is a manufacturer of prestigious sports cars from England. Also, the company was founded in 1913.