Aston Martin: F1 team stake up for sale as Stroll set to boost holding
Aston Martin is at risk of a takeover from Canadian billionaire Lawrence Stroll as he looks increase his stake in the car manufacturer by £52.5m.
Stroll’s Yew Tree Consortium is attempting to acquire 75m shares in Aston Martin at a seven per cent premium, bringing his ownership of the car manufacturer to 33 per cent.
However, according to UK Takeover Code, any person who acquires more than 30 per cent of shares in a company is required to make an offer to buy out the remaining shareholders.
This could mean that Stroll, who is also executive chair of the firm, will be mandated to take over the last remaining car manufacturer on British markets.
However, Aston Martin explained in a stock exchange announcement this morning that the investment would be contingent on the takeover limit for the firm to be increased to 35 per cent.
This would be achieved by seeking a waiver from the UK Panel on Takeovers and Mergers, as well as a resolution from other shareholders in the firm.
Aston Martin’s stock price has crashed 45 per cent in the last six months as investors panic over the impact of US president Donald Trump’s proposed tariffs on non-American car manufacturers.
On Thursday, when Trump announced plans to institute 25 per cent tariffs on all car makers, the firm was the worst performer in the FTSE 250, falling seven per cent.
“Five years into Aston Martin’s transformation, I remain highly confident about the company’s medium-term prospects having re-positioned the company as one of the most desirable ultra-luxury high performance automotive brands,” said Stroll.
Stroll first snapped up a stake in the firm in 2021 after investing £182m through his Yew Tree consortium, giving him a 16.7 per cent stake in the company.
Then in 2023, Stroll increased his stake in Aston Martin to 27 per cent.
In addition, Aston Martin said today that it would be looking to sell its minority investment in its Formula One team for £74m.
The firm had valued its stake in the Formula One team at £50.9m at the end of last year. Stroll’s son, Lance Stroll, currently races for Aston Martin’s Formula One team.
The news of Stroll’s intended purchase comes ahead of Aston Martin quarterly results, due later this month.
The firm said that trading this quarter had been in line with guidance previously provided, though volumes will be negatively impacted by fewer special deliveries.