Stroll consortium ups Aston Martin cash injection

Luxury car maker Aston Martin was under the cosh after it announced late on Friday that it had reduced its rights issue price and that a consortium led by Canadian Formula 1 billionaire Lawrence Stroll had agreed to up its cash injection by £20m to keep the company in business.

Under the new terms of the deal, Stroll’s consortium will receive a larger share of the company for less money. It will receive a 25% stake in return for £171m, at £2.25 per share, as well as the short-term capital injection. Previously, it had agreed to pay £182m for a 16.7% interest.

The company also said it was increasing its total capital raise by £36m to £536m amid "increased uncertainties" since the initial announcement on 27 February. The new rights price is 30p a share, down from 207p.

Aston Martin president and chief executive Andy Palmer said: "We are actively managing the potential impacts of Covid-19 on a daily basis, most particularly in our tier 2 supply chain, with no disruption to production to date and are mindful of the ongoing uncertainties and risks to the business.

"In light of the increased uncertainty presented by Covid-19 we are taking actions to safeguard the company through this extremely volatile period."

Stroll said there had been a "significant" change in the global market environment in which Aston Martin Lagonda operates.

"What has not changed is our commitment to provide the company with the necessary funding it needs to manage through this period, to reset the business and to deliver on its long-term potential.

"Following recent moves in the share price and discussions with the board, I and my consortium of investors, have agreed that we will now acquire 25% of the company and take up our rights in full in return for a long-term capital investment of £262 million. In addition, we have agreed to advance a further £20 million in short term funding to support the company, bringing this total amount to £75.5 million."

At 0920 GMT, the shares were down 10.7% at 183.95p.