Aston Martin Aramco Formula One Team released a statement on Monday about the luxury carmaker brand Aston Martin Lagonda selling its stake in the F1 team. The Executive Chairman of Aston Martin’s F1 team, Lawrence Stroll, is planning to increase his shares in the brand to make sure that the globally iconic name stays both on the grid and in the sport’s legacy for years to come.
Unwavering Commitment and Investments of Lawrence Stroll in F1
After recently experiencing financial ups and downs historically and a loss in its core business, Aston Martin Lagonda is preparing to sell its minority stake in the Aston Martin Aramco F1 racing team. The British company announced cutting about 5 percent of its workforce last month due to financial struggles.
The manufacturer’s main shareholder and investment vehicle is Yew Tree Consortium, led by the Canadian billionaire Lawrence Stroll, whose son Lance Stroll drives for the team. The Consortium will be raising its stake in the British carmaker group to roughly 33 percent from 27.7 percent, making around £52.5 million, as part of the transaction.
Under the British takeover rules, the Consortium is obliged to make a bid for all of Aston Martin if it raises its stake over 30 percent. Despite having increased its stake by 33 percent, Yew Tree Consortium asked for this rule to be waived.
The storied company stated that it will raise the group’s liquidity by more than £125 million ($162 million) through funding from Stroll. By publicly announcing to sell its minority investment in the F1 team, Aston Martin’s shares jumped 13 percent on Monday.
Stroll guaranteed that the transaction won’t impact the long-term Formula One sponsorship deal. While Aston Martin’s Chief Executive Adrian Hallmark said that the new investment will accelerate their progress into a “sustainably profitable company,” this transaction emphasized Lawrence Stroll’s “unwavering commitment” to both Aston Martin and his long-term objectives in F1.
Statement from Aston Martin Aramco F1 Team
“Today’s news underscores our Executive Chairman Lawrence Stroll’s long-term and unwavering commitment to both Aston Martin and the current Formula One Team. A long-term contract is now in place to ensure the Aston Martin name remains at the pinnacle of motorsport for decades to come.
“The proposed transactions, which will see Aston Martin Lagonda (AML) sell its stake in the Aston Martin Aramco Formula One Team (AMF1), will result in Mr Stroll increasing his shareholding in AML to 33% while strengthening the company’s balance sheet by over £125m.
“Mr Stroll has commissioned the investment bank Raine Group to help find a buyer for AML’s stake in the Formula One team. Raine will work closely with AMF1’s commercial chief Jeff Slack to secure a strategic investor who can add long-term value to the team and the brand.
Mr Stroll said: “These moves demonstrate that Aston Martin’s place on the Formula One grid is as secure as ever. AML recently re-committed to its long-term sponsorship and licensing agreement with AMF1, confirming that the legendary Aston Martin brand and its British racing green colours will compete in Formula One for decades to come.”
