# Aston Martin stock soars after $295 million on Geely investment
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-05-18
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Aston Martin Stock Surges on $295 Million Geely Investment
Meta Description: Aston Martin's stock surges nearly 22% after luxury carmaker secures $295 million investment from China's Geely, paving the way for future growth and
URL: https://financedigest.com/aston-martin-stock-soars-after-295-million-on-geely-investmenthtml

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(Reuters) -Aston [Martin’s](https://www.financedigest.com/aston-martin-cuts-volume-target-as-new-sports-car-hits-production-snag.html) stock popped nearly 22% on Thursday, after the luxury carmaker announced a 234 million pound investment by China’s Geely, that will see the automotive firm become its third-largest shareholder.

Geely will acquire about 42 million ordinary shares from Chairman Lawrence Stroll’s Yew Tree, which is currently the Aston [Martin’s](https://www.financedigest.com/aston-martin-cuts-volume-target-as-new-sports-car-hits-production-snag.html) largest stakeholder, at 335 pence apiece and subscribe for another 28 million shares at the same price.

The fresh issue will garner about 95 million pounds in cash proceeds for the British firm.

[Aston Martin](https://www.financedigest.com/aston-martins-first-suv-helps-push-up-sales-by-more-than-200.html "Aston Martin’s first SUV helps push up sales by more than 200%") shares, which closed at 231.2 pence on Wednesday, were trading up to 279.4 pence at 0727 GMT.

For Aston Martin, the preferred ride of fictional secret agent James Bond which has gone bankrupt seven times in its history, the investment paves the way to secure its long-term future and allows the century-old firm to lower its debt.

They offer us a deep understanding of the key strategic growth market that China represents, as well as the opportunity to [access their range of technologies](https://www.financedigest.com/kings-secure-technologies-adopts-agile-flexible-cloud-reporting-access-granular-real-time-financial-information.html "Kings Secure Technologies Adopts Agile and Flexible Cloud Reporting for Access to ‘Granular Real-time Financial Information’") and components,” Stroll said in a statement.

Geely, which owns multiple brands including British sportscar maker Lotus, Zeekr, Volvo and – via a joint venture with Volvo – Polestar, had acquired a 7.6% stake in the Formula One [team sponsor in September last year](https://www.financedigest.com/myfirmsapp-celebrates-being-named-a-finalist-in-besmas-customer-service-team-of-the-year-award.html "MyFirmsApp Celebrates being Named a Finalist in BESMA’s Customer Service Team of the Year Award").

That came after the carmaker rejected Italian [investment](https://www.financedigest.com/intel-facility-is-largest-greenfield-investment-in-poland-pm-says.html) group Investindustrial and Geely’s proposed funds of up to 1.3 [billion pounds](https://www.financedigest.com/edf-delays-uk-nuclear-project-to-2027-ups-price-by-3-billion-pounds.html "EDF delays UK nuclear project to 2027, ups price by 3 billion pounds") ($1.64 billion) in July.

Our decision to increase our shareholding in Aston [Martin reflects our confidence in the company’s](https://www.financedigest.com/martin-fincham-joins-immersive-tech-company-as-it-gears-up-for-next-funding-round.html "Martin Fincham joins immersive tech company as it gears up for next funding round") growth prospects, its technologies and its management team,” said Geely Chairman Eric Li.

The investment gives Geely a 17% stake in the company and entitles it to one board seat, behind number two shareholder [Saudi Arabia’s](https://www.financedigest.com/avaya-opens-customer-experience-center-saudi-arabia.html "Avaya Opens Customer Experience Center in Saudi Arabia") Public Investment Fund (PIF).

($1 = 0.7923 pounds)

(Reporting by Eva Mathews in Bengaluru; Editing by Savio D’Souza, Robert Birsel)


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