Company News

UPDATE 1-Aston Martin boosts capital-raising plan after coronavirus market volatility

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LONDON, March 13 (Reuters) - Aston Martin is increasing a 500-million pound ($617 million) capital-raising plan by 36 million pounds due to the coronavirus outbreak which will now see a consortium led by Canadian billionaire Lawrence Stroll take a roughly 25% stake in the firm.

Aston, which has seen its share price tumble in recent days in addition to big losses last year after it failed to meet sales expectations, announced plans for Stroll to buy up to 20% of the company in January in a bid to turn around its fortunes.

“In light of recent extraordinary equity market volatility related to concerns over Covid-19, the company has renegotiated certain terms relating to the proposed investment,” the company said on Friday.

Short-term working capital from Yew Tree, a vehicle controlled by Stroll, is also being increased to 75.5 million pounds.

The firm, which builds all its cars in Britain, said the third production trial of its first sport utility vehicle is going ahead as planned.

It said disruption to the supply chain in China had not impacted production.

“Supply is secured until at least early April and the company continues to monitor its suppliers and inventory as it seeks to extend this profile to mitigate future potential disruption,” it added. (Reporting by Costas Pitas; editing by Stephen Addison)