- Aston Martin is reportedly struggling after losing two-thirds of their share value recently.
- The company intends to reach an annual capex of 250 million pounds through 2025.
According to the trusted sources, German automaker Mercedes-Benz is planning to raise its stake in the British manufacturer of sports vehicles Aston Martin Lagonda Global Holdings plc by 20% through the year 2023. The increase in share value will enable Mercedes-Benz to be one of the largest shareholders in Aston Martin since the recent past.
Incidentally, the contract will include the already applicable supply agreement between the two companies in operation since 2013 and will give Aston Martin access to key Mercedes’ technologies, along with electric and hybrid drive systems.
Aston Martin was reported stating that Mercedes-Benz’s stake in the company is currently at 2.6% and will rise in several stages as a part of bigger problem of 250 million shares costing at 50 pence each. The company further claimed that the maximum value of issued stock to the German group will be valued at 286 million pounds ($372.7 million).
Lawrence Stroll, chairman and biggest shareholder at Aston Martin mentioned in a comment that the company is taking efforts to continue their long-lasting partnership with Mercedes-Benz AG, by allowing them to become one of the largest stakeholders.
It is to be noted that Aston Martin has been struggling since it floated couple of years ago, after losing two-thirds of their overall share value.
The British automaker launched its first SUV (sports utility vehicle), the DBX, following which the Aston Martin recorded a loss of 29 million pounds during the third quarter, as compared to the profit of around 43 million pounds it had generated in the year 2019.
Aston Martin intends to reach an annual capex of 250 million pounds to 300 million pounds through 2025, sources confirmed.