⁍ Aston Martin on Tuesday expanded a deal with Daimler AG to access the German automaker’s technology.
⁍ Aston Martin will place 250 million new shares with new and existing institutional investors at 50 pence a share.
⁍ The new shares issued would increase the size of Mercedes-Benz’s stake to no more than 20% by 2023 from the current 2.6%.
– It’s been a tough couple of years for British luxury car maker Aston Martin. First, it had to delay the launch of its James Bond-inspired sports car due to a lack of demand, and then it had to delay the release of its next-generation sports car, the DBX, due to a lack of interest from buyers. Now, the company is hoping a new partnership with Mercedes-Benz will help it turn things around, reports Reuters. Under an agreement announced Tuesday, Aston Martin will issue 250 million new shares to Mercedes-Benz in exchange for access to the German automaker’s technology, including its hybrid and electric drive systems. “We take another major step forward as our long-term partnership with Mercedes-Benz AG moves to another level with them becoming one of the Company’s largest shareholders,” says Chairman Lawrence Stroll. The agreement also gives Mercedes-Benz the right to nominate one non-executive director to Aston Martin’s board. The James Bond car maker, which has started deliveries of its first sport utility vehicle, the DBX, reported third-quarter adjusted core loss of 29 million pounds compared with a profit of 43 million pounds last year and revenue that nearly halved to 124 million pounds.
Source: https://www.reuters.com/article/us-aston-martin-divestiture/aston-martin-expands-deal-with-mercedes-benz-in-exchange-for-stake-idUSKBN27C2LK