Aston Martin said Geely Automobile Holdings had committed to invest about 234 million pounds ($295 million) in the British luxury automaker, making the Chinese automotive group its third largest shareholder.
As part of the transaction, Geely will acquire a 17 percent stake in Aston Martin, purchasing 42 million shares from Chairman Lawrence Stroll’s Yew Tree consortium along with 28 million new shares, Aston Martin said in a stock exchange filing.
“Geely Holding, who initially became a shareholder last year, sees tremendous potential for Aston Martin’s long-term growth and success,” Stroll said in a statement.
“They offer us a deep understanding of the key strategic growth market that China represents, as well as the opportunity to access their range of technologies and components,” he said.
Aston Martin has struggled with cash and acquired Saudi Arabia’s Public Investment Fund as a shareholder last year as Stroll looks to turn around the automaker and pivot to battery-powered sports cars. Analysts have in the past said that Aston’s lack of scale and precarious cash balance made it vulnerable.
Currently, Stroll’s Yew Tree is the company’s largest shareholder, followed by Saudi Arabia’s Public Investment Fund.
Geely owns multiple brands including British sports-car maker Lotus, Zeekr, Volvo Cars and Polestar, via a joint venture with Volvo.
Geely acquired a 7.6 percent stake in Aston Martin in September last year.
“Our decision to increase our shareholding in Aston Martin reflects our confidence in the company’s growth prospects, its technologies and its management team,” said Geely Chairman Eric Li.
Reuters and Bloomberg contributed to this report
