F1 boss linked to Aston Martin stake
Thursday 19th December, 2019 - 6:00am
Billionaire businessman Lawrence Stroll, owner of the Racing Point Formula One team, is reportedly in negotiations to take a controlling stake in famed British sports car brand Aston Martin.
First rumoured several weeks ago via a report from Autocar and RaceFans the potential of a deal between a consortium led by Stroll and Aston Martin gathered steam in recent days with the car maker releasing a statement to the London Stock Exchange revealing it is in discussions with possible investors.
The statement read: “The Company confirms that is reviewing its funding requirements and various funding options. It is also engaged in early-stage discussions with potential strategic investors in relation to building longer term relationships which may or may not involve an equity investment. A further announcement will be made as and when appropriate.”
Aston Martin’s current major shareholders include the private equity groups Adeem/Primewagon and Investindustrial, while Daimler (Mercedes-Benz parent company) has a 4 per cent stake.
The brand is reportedly looking for fresh capital with its share price hitting a recent low of £4 well down on its high of £17. That makes it well placed for a Stroll takeover, with the Canadian having made his reported $2 billion fortune by investing in brands at a low point and rebuilding their value. He did the same with fashion brands Pierre Cardin, Tommy Hilfiger and Ralph Lauren.
If Stroll’s group took control of Aston Martin it could see the British brand increase its F1 exposure, possibly even as a factory team. Racing Point could be rebranded Aston Martin Racing if under the same ownership, and Racing Point uses Mercedes-AMG engines just like several Aston Martin road cars.
Aston Martin is in the middle of implementing his so-called ‘Second Century’ plan that will see the introduction of several new models, including the recently revealed DBX SUV.