- Aston Martin says transaction will boost the company’s balance sheet by over UK£125m
- Stroll has said team “could be very picky” on who invests
- Aston Martin to continue to give name to F1 outfit
Aston Martin Lagonda is selling its shares in the eponymous Formula One team, but owner Lawrence Stroll has reaffirmed the car manufacturer’s commitment to the series.
In short, the manufacturer is in Formula One predominantly as a marketing exercise, so selling its shares has little effect on the overall operations of the team. The Race reports that Aston Martin’s sponsorship deal with the team will continue for another five years from next season.
‘Today’s news underscores our executive chairman Lawrence Stroll’s long-term and unwavering commitment to both Aston Martin and the current Formula 1 team,’ a statement from Aston Martin read.
‘A long-term contract is now in place to ensure the Aston Martin name remains at the pinnacle of motorsport for decades to come.
‘The proposed transactions, which will see Aston Martin Lagonda (AML) sell its stake in the Aston Martin Aramco Formula One Team (AMF1), will result in Mr Stroll increasing his shareholding in AML to 33 per cent while strengthening the company’s balance sheet by over [UK]£125m.
‘Mr Stroll has commissioned the investment bank Raine Group to help find a buyer for AML’s stake in the Formula One team. Raine will work closely with AMF1’s commercial chief Jeff Slack to secure a strategic investor who can add long-term value to the team and the brand.’
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Stroll said: “These moves demonstrate that Aston Martin’s place on the Formula One grid is as secure as ever. AML recently recommitted to its long-term sponsorship and licensing agreement with AMF1, confirming that the legendary Aston Martin brand and its British racing green colours will compete in Formula One for decades to come.”
Bloomberg reports that Stroll’s Yew Tree consortium is paying around UK£52.5 million (US$67.7 million) to increase its stake in the car manufacturer, although it is currently unclear who will step in to purchase the Formula One team’s shares being vacated by Aston Martin.
The shares are expected to raise at least UK£74 million (US$95.4 million) for the ailing car manufacturer and Stroll is looking to add a new strategic investor to the team to add to existing investments from Arctos Partners, HPS Investment Partners, and Accel Partners, although the last two were never officially confirmed by the team.
Off the back of being valued at more than UK£1.5 billion (US$2 billion) after last year’s investment, Stroll has said that overall demand means the team “could be very picky on who to sell this percentage to”.
According to The Race, the Aston Martin Formula One team’s title partner Aramco previously had a clause that entitled it to a ten per cent holding in the team under its sponsorship agreement. If the Saudi oil giant still opts not to pursue minority ownership, another option for the team is to source a different investor akin to the route taken with Arctos.
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