Aston Martin is as British as drizzle and telling an enquiring waiter that your awful meal was actually delicious, but a big slice of the company has just set sail for China.
Geely already owned 7.6 percent of Aston following a deal made last September but now the Chinese automaker has upped its stake to 17 percent. Geely Automobile Holdings will invest £234 million ($292 m) in Aston Martin, making it the third largest shareholder behind chairman Lawrence Stroll and Saudi Arabia’s Public Investment Fund.
Under the new deal, Geely will receive 42 million shares from Stroll’s Yew Tree consortium, plus 28 million new shares and the chance to appoint a director to the sports car brand’s board. Aston, meanwhile, will gain access to £95 million ($118 m) to help improve its weak cashflow position and has an agreement in place stating that Geely won’t acquire additional shares that would take its stake past 22 percent until August 2024 at the earliest.
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Though Geely is best known as a Chinese company, this latest move sees it expand its presence on the global stage. It already owns Volvo, Polestar, and Lotus, and holds a 10 percent stake in Daimler.
“Geely Holding, who initially became a shareholder last year, sees tremendous potential for Aston Martin’s long-term growth and success,” Stroll said at the announcement.
“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 added.
Aston suffered a disastrous stock market launch in 2019 but the shares in Aston Martin Lagonda Global Holdings jumped today in response to the Geely news.