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Formula 1

Aston Martin has secured a £653m investment from Saudi Arabia’s sovereign wealth fund

Aston Martin has announced a “game-changing” financial transaction in which the state wealth fund of Saudi Arabia would acquire a 17 percent interest.
Aston Martin Lagonda was seeking new funding, which it now appears to have obtained in large quantities.
Aramco, the current title sponsor of the Aston Martin Formula 1 team, is owned by the Saudi Arabian investment company PIF, and it will now increase its involvement with the Aston Martin organization.
Along with PIF, other current investors such as Lawrence Stroll’s Yew Tree Consortium and Mercedes-Benz participated in the fundraising drive. From the entire investment pool, a goal sum of £653m is set.
According to the agreement, PIF will acquire a 16.7% stake in Aston Martin, making them the company’s second-largest shareholder behind Stroll’s consortium, which already holds an 18.3% stake.
As part of the agreement, Mercedes’ share decreases from 11.7 percent to 9.7 percent.
PIF also participated in a refinancing endeavor from the McLaren Group in 2021, which was then a shareholder in the company.
Stroll referred to the addition of PIF’s finance as “game changing” because former Ferrari CEO Amedeo Felisa is now the CEO of Aston Martin.

He added in a statement, as reported by Motorsport.com, “Overall, this is a game-changing event for Aston Martin, enabling the achievement of our strategic ambitions and increasing our long-term growth potential.”
It alters our balance sheet, liquidity, and cash flow profile and gives us a clearer understanding of how to become sustainably free cash flow positive and significantly increase shareholder value.
We now have the appropriate team in place, led by Amedeo Felisa, and the ideal approach to fully realize Aston Martin’s long-term promise.
Starting with the 2021 season, Stroll rebranded his Racing Point team to adopt the Aston Martin brand, bringing the name back to Formula 1.
Even though the team is currently ninth in the 2022 Constructors’ Championship, far from the goal of winning the championship, Stroll said that the brand’s return to Formula 1 has “ushered in a new era.”
“Our legendary British brand has entered a new era with Aston Martin’s return to the pinnacle of racing with the Aston Martin Aramco Cognizant F1 team,” he added.
With more than 60% of buyers in 2021 being new to the brand, our focus on establishing brand equity and maximizing Aston Martin is already generating rising demand.