(Alliance News) - Aston Martin Lagonda Global Holdings PLC on Friday said it has raised GBP654 million and Chinese vehicle manufacturing giant Zhejiang Geely Holding Group Co has picked up a 7.6% stake in the company.
The Gaydon, England-based luxury carmaker proposed an equity raise of GBP653 million back in July.
At the time, Aston Martin said it would raise the funds through a placing of 23.3 million shares at a price of GBP3.35 each for GBP78.0 million to Saudi Arabia's Public Investment Fund, followed by an underwritten rights issue to raise GBP575 million.
Formed in 1971 to support the Saudi economy, Saudi Arabia's PIF - one of the world's largest sovereign wealth funds - has around USD620 billion in assets under management.
On Friday, the company said the GBP654 capital injection will both "meaningfully deleverage" its balance sheet, and "strengthen and accelerate" its long-term growth.
As part of the capital raise, Geely Holding Group picked up a 7.6% stake in Aston Martin.
Further, Chair Lawrence Stroll's Yew Tree Consortium upped its stake to 19%, whilst PIF upped its stake to 18.7%.
Stroll said: "I am delighted that we have successfully completed this transformational capital raise which significantly strengthens our financial position and enhances our pathway to becoming sustainably free cash flow positive."
Shares in Aston Martin were up 1.4% to 127.15 pence each in London on Friday morning.
By Sophie Rose; sophierose@alliancenews.com
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Aston Martin Lagonda (AML)
