Zhejiang Geely Holding Group announced on Thursday that it has increased its stake in British sports car manufacturer Aston Martin to approximately 17%. Geely Holding first purchased a 7.6 percent stake in Aston Martin in September of last year.
Geely Holding Group
The increased stake makes Holdings the third-largest shareholder in Aston Martin, according to Aston Martin’s statement to the London Stock Exchange.
The increased stake in Aston Martin will be part of Holding’s strategic investment portfolio, which includes long-term equity stakes in global automotive brands, according to a press release from the Chinese automotive technology group.
Geely Holding will be able to appoint a non-executive director to the Aston Martin board as part of the equity increase, as well as an observer.
“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 Li Shufu, chairman of Geely Holding Group, in the statement.
“Geely can offer us a deep understanding of the key strategic growth market of China as well as the opportunity to access their range of technologies,” said Lawrence Stroll, executive chairman of the board with Aston Martin.
Aston Martin (AML.L) shares rose nearly 25% on Thursday after the luxury carmaker announced a 234 million pound investment by China’s Geely (0715.HK), doubling the automotive firm’s stake and elevating it to the third-largest shareholder.
The company will purchase approximately 42 million ordinary shares at 335 pence each from Chairman Lawrence Stroll’s Yew Tree, currently Aston Martin’s largest shareholder, and subscribe for an additional 28 million shares at the same price, raising approximately 95 million pounds in cash for the British firm.
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