Aston Martin gains capital injection and strengthens link with Mercedes

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Updated 28 October 2020

Aston Martin gains capital injection and strengthens link with Mercedes

  • Shares in the company jumped as much as 12.8 percent after it said late on Tuesday

LONDON: Aston Martin’s 125 million pound ($163 million) capital increase has been fully subscribed, the loss-making carmaker said on Wednesday as it seeks to turn round the business with additional support from Daimler.

Shares in the company jumped as much as 12.8 percent after it said late on Tuesday that Daimler’s Mercedes-Benz would lift its stake in the British carmaker to up to 20 percent by 2023.

Mercedes will not put up any cash but will be given the shares in exchange for expanding an existing supply agreement, allowing Aston Martin to access key Mercedes technology, including hybrid and electric drive systems.

The German carmaker, which already had a 2.6 percent holding in Aston Martin, said the deepened partnership would result in further sales of its components and systems, as well as the potential upside of any increase in the value of the stake.

Former Mercedes CEO Tobias Moers took charge of struggling Aston Martin at the start of August.

In Tuesday night’s statement, the British company said it was targeting production volumes of about 10,000 vehicles, revenue of about £2 billion and adjusted core profit of £500 million by its 2024 or 2025 financial years.

The company sold around 5,860 vehicles last year, bringing in revenue of nearly £1 billion with core profit of £134 million.

“With a strong industrial partner in Mercedes, it has a decent chance at success. And if it does succeed, maybe it will create some value for Daimler shareholders too,” Bernstein analysts said in a note.

Aston Martin, known for being James Bond’s carmaker of choice, has suffered a torrid time since it floated two years ago, with its shares losing two thirds of their value this year.

A consortium led by Canadian billionaire and Formula One team owner Lawrence Stroll became the largest investor in the company in January.


Dubai builder Arabtec to file application for insolvent liquidation

Updated 9 min 32 sec ago

Dubai builder Arabtec to file application for insolvent liquidation

  • Board conclude that it is no longer tenable for the company to continue operating outside of a formal insolvency process
  • The court application will also request a number of other companies in the group be placed into insolvent liquidation at the same time

DUBAI: UAE Builder Arabtec Holding confirmed at a general assembly meeting on Monday it will, at the earliest opportunity, file an application for its insolvent liquidation at the courts.

“In accordance with the resolution of the company’s shareholders at the general assembly meeting held on Sept. 30, 2020, the conclusion was reached following a two-month period of discussions with key stakeholders,” state news agency WAM reported.

“The Board has concluded that it is no longer tenable for the company to continue operating outside of a formal insolvency process and that it is in the best interests of the company’s stakeholders that the company be placed into an insolvent liquidation (subject to court approval) at the earliest opportunity,” the report added.

The court application will also request that Arabtec Construction LLC, Arabtec Constructions LLC, Austrian Arabian Readymix Concrete Co LLC and Arabtec Precast LLC (collectively the Impacted Companies) will also be placed into insolvent liquidation at the same time.

No application has been made with regards to other subsidiaries and the builder intends to continue to engage with stakeholders to explore options open to it, the report added.