Aston Martin (AML) has confirmed that it is reviewing its funding position and engaged in talks with potential investors, following a sharp share price drop.
After its shares lost almost 10 per cent while most of the rest of the market was enjoying a post-election rally on Friday 13 December, the luxury car manufacturer issued a statement after market close revealing that “it is reviewing its funding requirements and various funding options”. Aston Martin also disclosed that it is “in early-stage discussions with potential strategic investors in relation to building longer-term relationships which may or may not involve an equity investment”. There have been reports that Lawrence Stroll, owner of Formula 1 team Racing Point, is weighing up a bid.
In September, Aston Martin issued a bond in a bid to raise $150m (£112m) with an alarmingly high coupon of 12 per cent, along with an option to raise another $100m. At its November third-quarter update, the company said that its net debt stood at £800m, giving it leverage of 5.5 times cash profits.
