The consortium offering Aston Martin (AML) a lifeline is to take a larger stake for its cash injection into the struggling luxury car manufacturer while existing shareholders will have to stump up more money. The consortium led by F1 racing entrepreneur Lawrence Stroll will now get a 25 per cent stake in the company for its £262.5m cash injection compared with the 16.7 per cent it was to get under the old terms of the deal. "There has been a significant change in the global market environment in which Aston Martin Lagonda operates,” Mr Stroll said in a statement.
There are two stages to the equity refinancing. The consortium will first buy a 25 per cent stake for 225p a share, injecting £171m into Aston. This was previously 16.7 per cent at 400p a share to raise £182m. This placing will be followed by a deeply-discounted right issue at 30p. The rights issue had previously been priced at 207p. Meanwhile, the proceeds from the rights issue will be £47m higher at £365m based on the issue of 1.2bn shares issued compared with 153m previously.
Putting more onus on the discounted rights issue means more money will come from existing holders.
