After acquiring a 7.6% stake in Aston Martin Lagonda last September, Zhejiang Geely Holding Group (Geely Holding) today announced it has increased its shareholding in the British carmaker to 17% as part of a new relationship agreement. The Chinese company spent 234 million British pounds (around RM1.3 billion) to boost its share, according to the London Stock Exchange.
With this deal, Geely Holding is now the third largest shareholder in Aston Martin Lagonda behind Lawrence Stroll and Saudi Arabia’s Public Investment Fund. Geely Holding now has a bigger stake than Mercedes-Benz, which currently owns a 12%, although the German carmaker plans to increase this to as much as 20% by the end of 2023.
Following the new agreement, Geely will not be allowed to increase its share until August 2024, but it can now appoint a non-executive director as a shareholder representive as well as a second person as an observer.
“Our decision to increase our shareholding in Aston Martin reflects our confidence in the company’s growth prospects, its technologies and its management team. Since first acquiring our minority holding last September (2022), we have worked collaboratively with executive chairman Lawrence Stroll and his colleagues and now look forward to exploring joint technology synergies and new growth opportunities to help this iconic automotive brand to achieve its full potential,” said Eric Li, chairman of Geely Holding.
“This announcement is a further significant step towards delivering our ambition for Aston Martin. Geely Holding, who initially became a shareholder last year, sees tremendous potential for Aston Martin’s long-term growth and success,” commented Lawrence Stroll, executive chairman of the board at Aston Martin Lagonda.
“Geely can offer us a deep understanding of the key strategic growth market of China as well as the opportunity to access their range of technologies. Geely shares our vision for Aston Martin and wants to be a more significant shareholder. This transaction enables the creation of a long-term partnership with Geely – a relationship that I believe will bring very significant value for all of our shareholders over time,” he added.
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