Telegraph article29 Oct 2020 10:31
Fair play to Lawrence Stroll. When he leapt aboard the burning wreck of Aston Martin earlier this year it was tempting to wonder whether he’d spent too much time loitering near the starting grid, getting high on exhaust fumes.
The carmaker was a “beautiful jewel” in need of little more than a polish, he declared. Had he even looked under the bonnet? This was a company that had chalked up more pitstops than a whacky races double bill.
Shareholders have probably lost count of how many times the company has topped up the tank since its disastrous stock market float two years ago. Indeed, the latest fundraising is the third since Stroll seized the wheel in January.
On this occasion, he has gone for the full MOT, though it comes with the usual fuel change: another bumper fund-raising, largely in the form of a refinancing of existing borrowings.
Almost £1.2bn of new debt is being issued, alongside a £125m cash injection courtesy of a mysterious outfit called Zelon Holdings, described only as a “European family office” for reasons not clear, hedge fund Permian Investment Partners, as well as Stroll himself.
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Aston Martin’s losses widened as it built up to the launch of its first-ever SUV
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With £200m left over from the £1.3bn deal, the carmaker will have a cash pile of £500m, enough to banish talk of an eighth bankruptcy, at least for the time being anyway. That in itself is progress.
Yet, it is the prospect of closer ties with Mercedes-Benz that has Stroll giddy with excitement. Mercedes’ parent Daimler, will gradually increase its existing stake in Aston Martin, which had been watered down to 2.6pc from 5pc in previous fund-raisings, to as much as 20pc over the next three years.
In return, Aston Martin gets access to Daimler’s cutting-edge electric technology. The carmaker’s plans to build its first electric car were sacrificed when Stroll took control as it desperately sought to preserve cash. Daimler on the other hand has ploughed billions into electric models, batteries, and charging points.
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