AGL 40.22 Increased By ▲ 0.22 (0.55%)
AIRLINK 131.10 Increased By ▲ 1.57 (1.21%)
BOP 6.83 Increased By ▲ 0.15 (2.25%)
CNERGY 4.63 No Change ▼ 0.00 (0%)
DCL 9.05 Increased By ▲ 0.11 (1.23%)
DFML 43.75 Increased By ▲ 2.06 (4.94%)
DGKC 84.25 Increased By ▲ 0.48 (0.57%)
FCCL 33.10 Increased By ▲ 0.33 (1.01%)
FFBL 79.17 Increased By ▲ 3.70 (4.9%)
FFL 11.82 Increased By ▲ 0.35 (3.05%)
HUBC 110.61 Increased By ▲ 0.06 (0.05%)
HUMNL 14.73 Increased By ▲ 0.17 (1.17%)
KEL 5.37 Decreased By ▼ -0.02 (-0.37%)
KOSM 8.34 Decreased By ▼ -0.06 (-0.71%)
MLCF 39.85 Increased By ▲ 0.06 (0.15%)
NBP 61.09 Increased By ▲ 0.80 (1.33%)
OGDC 201.99 Increased By ▲ 2.33 (1.17%)
PAEL 26.70 Increased By ▲ 0.05 (0.19%)
PIBTL 7.87 Increased By ▲ 0.21 (2.74%)
PPL 161.01 Increased By ▲ 3.09 (1.96%)
PRL 26.70 Decreased By ▼ -0.03 (-0.11%)
PTC 18.57 Increased By ▲ 0.11 (0.6%)
SEARL 82.39 Decreased By ▼ -0.05 (-0.06%)
TELE 8.25 Decreased By ▼ -0.06 (-0.72%)
TOMCL 34.50 Decreased By ▼ -0.01 (-0.03%)
TPLP 9.05 Decreased By ▼ -0.01 (-0.11%)
TREET 17.13 Decreased By ▼ -0.34 (-1.95%)
TRG 60.92 Decreased By ▼ -0.40 (-0.65%)
UNITY 27.50 Increased By ▲ 0.07 (0.26%)
WTL 1.44 Increased By ▲ 0.06 (4.35%)
BR100 10,577 Increased By 170.3 (1.64%)
BR30 32,108 Increased By 395.1 (1.25%)
KSE100 98,486 Increased By 1158.1 (1.19%)
KSE30 30,642 Increased By 449.5 (1.49%)
Markets

Aston Martin gains capital injection and strengthens Mercedes link

  • Shares in the company jumped as much as 12.8% after it said late on Tuesday that Daimler's Mercedes-Benz would lift its stake in the British carmaker to up to 20% by 2023.
  • Mercedes will not put up any cash but will be given the shares in exchange for expanding an existing supply agreement.
Published October 28, 2020

Aston Martin's 125 million pound ($163 million) capital increase has been fully subscribed, the loss-making carmaker said on Wednesday as it seeks to turn round the business with additional support from Daimler.

Shares in the company jumped as much as 12.8% after it said late on Tuesday that Daimler's Mercedes-Benz would lift its stake in the British carmaker to up to 20% by 2023.

Mercedes will not put up any cash but will be given the shares in exchange for expanding an existing supply agreement, allowing Aston Martin to access key Mercedes technology, including hybrid and electric drive systems.

The German carmaker, which already had a 2.6% holding in Aston Martin, said the deepened partnership would result in further sales of its components and systems, as well as the potential upside of any increase in the value of the stake.

Former Mercedes CEO Tobias Moers took charge of struggling Aston Martin at the start of August.

In Tuesday night's statement, the British company said it was targeting production volumes of about 10,000 vehicles, revenue of about 2 billion pounds and adjusted core profit of 500 million pounds by its 2024 or 2025 financial years.

The company sold around 5,860 vehicles last year, bringing in revenue of nearly 1 billion pounds with core profit of 134 million pounds.

"With a strong industrial partner in Mercedes, it has a decent chance at success. And if it does succeed, maybe it will create some value for Daimler shareholders too," Bernstein analysts said in a note.

Aston Martin, known for being James Bond's carmaker of choice, has suffered a torrid time since it floated two years ago, with its shares losing two thirds of their value this year.

A consortium led by Canadian billionaire and Formula One team owner Lawrence Stroll became the largest investor in the company in January.

Comments

Comments are closed.