Lawrence Stroll, owner of Formula One team Racing point, seeking large stake
Aston Martin’s shares had slumped since its flotation just over a year ago.
Photograph: Arnd Wiegmann/Reuters
Shares in Aston Martin have surged on reports that the billionaire owner of a Formula One racing team is preparing to bid for a significant stake in the luxury carmaker.
Lawrence Stroll, the owner of Racing Point, is leading a consortium that is considering a stake in the British firm, according to Autocar.
Aston Martin shares have slumped since its flotation just over a year ago. Sold at £19, they tumbled to 399p at the end of October, but climbed 18% to close at 595p on Thursday amid reports of Stroll’s interest.
The carmaker, which has recently launched its first SUV and officially opens its newest plant in St Athan, south Wales, on Friday, has struggled with poor sales and the fallout from a Chinese slowdown and Brexit confusion.
The move has given rise to speculation that Stroll could seek to rebrand his Racing Point team as Aston Martin. The automaker is the sponsor of Red Bull’s F1 team.
Racing Point said it had “no comment on media speculation and rumours”. Aston Martin also declined to comment.
A bid would come as some relief to Aston Martin , which has gone bust seven times in its 106-year history. The disastrous IPO incurred costs of £136m for the firm.
Last month it reported another £13m loss for the quarter, which it blamed on tough trading conditions and poor sales of its Vantage two-seater sports car. It took on additional loans of £120m at onerous rates in September to shore up its finances, pushing its debt to £800m.
The chief executive, Andy Palmer, has sought to reposition the brand, mostly aimed at male, sports-car driving community, to a broader market of wealthy customers, including super-rich American and Chinese women.
Last month Aston Martin launched the DBX, its first sports utility vehicle, which will cost about £158,000. The company will officially open a new factory in south Wales, the first UK car manufacturing facility to open in a decade.
Full production of the SUV will start in spring. The factory, which will employ up to 750 workers, will double overall unit production at Aston Martin, targeting 4,000 SUVs a year – equivalent to its annual output of other luxury cars across its entire range.
Stroll, 60, a Canadian businessman who invested in fashion houses as well as a motor racing circuit in Quebec, has bankrolled his son’s racing career. Lance Stroll, 21, joined his father this season as a driver after the takeover of Force India, rebranded Racing Point.