Mercedes-Benz To Increase Stake In Aston Martin Up To 20 Percent By 2023
After its first shareholding increase the German firm will get the right to nominate one non-executive director to Aston Martin’s board.
Mercedes-Benz will be increasing its shares in Aston Martin by up to 20 percent by 2023 and by doing so will become one of the British carmaker’s largest shareholders.
Aston Martin has stated that the increase in Mercedes-Benz’ stake, which is at 2.6 percent at present, would take place in several stages as part of a wider issue of 250 million shares at 50 pence (Rs. 47.87) each.
The stock issued to Mercedes will have a maximum value of 286 million pounds (Rs. 2761 crores), said the 107-year-old firm.
Ever since it floated, which was two years ago, Aston Martin has been suffering and its shares lost two-thirds of their value in this year.
After its first shareholding increase in Aston Martin, the German firm will get the right to nominate one non-executive director to the board of James Bond’s carmaker of choice.
However, already from August, Tobias Moers who was earlier the CEO of Mercedes-AMG, has been heading Aston Martin.
Further, the deal will see Aston Martin get access to key technology from Mercedes, including hybrid and electric drive systems.
This deal would only strengthen Aston Martin, since in the last quarter, the firm’s revenue was 124 million pounds (Rs. 1197 crores), down by nearly half in comparison with the same period last year.
With Mercedes’ backing, Aston is targeting annual capex of 250-300 million pounds (Rs. 2415-2898 crores) per year from 2021 through 2025.
Source – Reuters.com