Business
Substantial Investment in Aston Martin by Geely
Substantial Investment in Aston Martin by Geely.
About this update from Aston Martin Lagonda Global Holdings Plc
[{"type":"text","content":"\n\n18 May 2023\n \nAston Martin Lagonda Global Holdings plc\n \nSubstantial Investment in Aston Martin by Geely Holding subsidary entity, Geely International (Hong Kong) Limited (\"Geely\") and New Relationship Agreement\nAston Martin Lagonda Global Holdings plc (\"Aston Martin\", \"Aston Martin Lagonda\" or the \"Company\") today announces a substantial investment from Geely Holding, China's leading independent automotive group, as part of a new relationship agreement that seeks to support Aston Martin's growth and vision to be the world's most desirable ultra-luxury British performance brand.\nThe Company provides the following update:\n· Geely has committed approximately £234 million to become the third largest shareholder in Aston Martin:\no Acquisition of c.42m existing Ordinary Shares from the Yew Tree Consortium at 335 pence per share\no Subscription for c.28m New Shares at 335 pence per share\n· The Yew Tree Consortium to remain as the largest shareholder at c.21%, with Geely's aggregrate shareholding to increase to c.17%\n· Aston Martin Lagonda to receive approximately £95 million in cash from the subscription of the New Shares\n· A new Relationship Agreement will give Geely the right to appoint a Non-Executive Director to the Aston Martin Board of Directors\n \nAston Martin, Geely and the consortium of investors led by Yew Tree Overseas Limited (\"Yew Tree Consortium\") announce the entry by Geely into (a) a sale and purchase agreement (the \"SPA\") with certain members of the Yew Tree Consortium, to acquire 41,575,708 existing ordinary shares of the Company (\"Ordinary Shares\") and (b) a subscription agreement (the \"Subscription Agreement\") with the Company, to subscribe for 28,300,000 new Ordinary Shares (the \"New Shares\"), in each case at a price of 335 pence per Ordinary Share (representing a 45% premium to the closing price per Ordinary Share on 17 May 2023) (the \"Transaction\"). The issue of the New Shares under the Subscription Agreement is conditional upon completion under the SPA.\nOnce completed, the Transaction will increase Geely's ownership in the Company to c.17%, at which point Geely is expected to become Aston Martin's third largest shareholder, a...