|Bid||426.20 x 0|
|Ask||428.50 x 0|
|Day's range||421.00 - 432.00|
|52-week range||4.50 - 1,374.40|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||N/A|
|Earnings date||27 Feb 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||1,849.11|
How far off is Aston Martin Lagonda Global Holdings plc (LON:AML) from its intrinsic value? Using the most recent...
Lawrence Stroll is leading a consortium to inject equity into Aston Martin, which is in a weak bargaining position.The post A billionaire investor wants a stake in Aston Martin, but I would stay clear appeared first on The Motley Fool UK.
I think rising levels of borrowing and falling earnings could be a terminal combination for the Aston Martin share price. The post Warning! I think the Aston Martin share price could fall a further 40% appeared first on The Motley Fool UK.
Aston Martin shareholders can breathe again after billionaire steps in to save the company. But will I join them?The post Aston Martin share price soars on rescue deal. Here's what I'd do now appeared first on The Motley Fool UK.
Canadian billionaire Lawrence Stroll and investors have rescued Aston Martin with a 500 million pound cash injection that analysts say will help stabilise the British carmaker whose first sport utility vehicle (SUV) is set to hit the road. Stroll agreed to buy up to 20% of the 107-year-old company and will become executive chairman of James Bond's automaker of choice, which has gone bankrupt seven times in its chequered history. A consortium led by Stroll will invest 182 million pounds, whilst major existing shareholders - primarily Italian and Kuwaiti private equity groups - will be part of a rights issue to raise 318 million pounds.
(Bloomberg Opinion) -- The maker of Aston Martin sportscars is finally moving to remedy a botched initial public offering that gave it neither the money nor the investors it needed. Friday brought a cash injection, a new shareholder and a shift in strategy. Crisis measures never come cheap and the rescue comes with many strings attached.Aston Martin Lagonda Global Holdings Plc, by its own admission, had become financially stressed. Its debts are overwhelming; liquidity was drying up. The company is raising 500 million pounds ($656 million), the figure analysts thought it needed, selling a 17% stake to luxury and motorsport entrepreneur Lawrence Stroll and then seeking additional funds from its new backer and existing shareholders through a rights issue.Stroll is buying in at 4 pounds a share, just shy of the closing price on Thursday. The placing represents the maximum dilution the company can inflict without having to make the deal available to other shareholders.The two-part process is necessary because Aston would struggle to raise the funds it needs by relying solely on its existing investors and the market without providing a compelling new investment case and fresh management. While Italian private equity group Investindustrial Advisors SpA, a 33% holder, will take up its full allocation in the rights offer, the Kuwaiti investment fund that owns 28% appears unwilling or unable to contribute in full. It will take up a portion of its rights by selling the rest, perhaps to Stroll.With interest waning from Chinese automotive group Zhejiang Geely Holding Group Co., Stroll — who brings expertise and money — could dictate the terms. He gets the executive chairmanship and a change of strategy. Buying as much as a 20% stake at a discount gives him quasi-control. That would usually require paying a premium for the whole business. Aston acknowledges that its governance arrangements contradict best practice and says the board will have to “consider its composition over time.” Still, the arrangement feels like it will become permanent.The alternatives were probably worse. Aston now has an entrepreneur at the helm steeped in the luxury and automotive industries, and who has wealth committed to making it work. For minorities, already accustomed to being wedged between two big anchor shareholders, one of whom was a seller, that’s surely more comforting than worrying.The strategy seems to double down on Aston’s existing approach. The main change is a beefed-up link to motor racing, and delaying a push into electric cars. This carries some risk. Aston will put its name on, and take an undisclosed stake in, Stroll’s Racing Point Formula 1 team. That replaces a straight sponsorship deal with the Red Bull Racing F1 team. Aston will be able to say that its luxury vehicles are descended from real racing cars. Expect the mix of vehicles in the range to be more evenly balanced between so-called front-engine sportscars, the new DBX sports utility vehicle, and luxury mid-engine cars.The economics of this arrangement are unclear, and there’s a potential conflict given that Stroll is invested in both the F1 team and Aston. But his interest in the listed Aston carmaker is substantial enough to mitigate such fears.The market reaction attests to the development being positive overall. Stroll has already made paper gain of 35 million pounds ($46 million) on his pledged placing shares — a 19% increase. The rewards for those who get in at the bottom can be substantial. But Aston and its shareholders are paying a dear price for the board’s old strategy of wishful thinking, rather than grasping the nettle sooner and raising equity from the market when it might still have been possible. Get the capital structure wrong and fail to find new long-term backers at IPO, and it will come back to haunt you.To contact the author of this story: Chris Hughes at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Canadian billionaire Lawrence Stroll has agreed to buy up to 20% of Aston Martin and rename his Formula One team after the 107-year-old company famed for being fictional secret agent James Bond's car of choice. A decline in sales of Aston Martin's luxury sports cars since it floated on the London Stock Exchange in October 2018 has put the company's shares and finances under sustained pressure, forcing it to seek help. Aston Martin shares surged as much as 30% after the announcement and were 18% higher at 1038 GMT.
Racing Point will become the Aston Martin factory Formula One team from 2021 after their Canadian billionaire owner Lawrence Stroll bought into the ailing British sportscar maker on Friday. The deal means Aston Martin's title sponsorship of former world champions Red Bull will end after the current season. Under the deal announced on Friday, Stroll will pay 182 million pounds for a 16.7% stake in Aston Martin which could rise to 20%.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Aston Martin Lagonda Global Holdings Plc secured a 500-million-pound ($656 million) lifeline to restore the balance sheet and help build a new sport-utility vehicle after agreeing to sell a minority stake to billionaire Lawrence Stroll.The deal agreed late Thursday gives the U.K. luxury carmaker much-needed breathing space as it looks to get back in track following a turbulent start to life as a public company.Aston Martin needs funds to ease a debt burden and start building the DBX -- its first-ever SUV -- which Chief Executive Officer Andy Palmer is banking on to sell in higher volumes than the stylish sports cars made famous in the James Bond movies.The shares posted their biggest gain ever on Friday after Aston Martin announced details of the rescue package, which sees a group led by Stroll buying as much as 20% of the company. The sterling bonds also rose to their highest since July.The Canadian investor will become executive chairman, according to a statement. Bloomberg News reported earlier that the deal had been agreed to overnight.“This fund-raise brings down our leverage and substantially supports investment in new products,” Palmer said in an interview. The company no longer needs to draw down on a 100 million-pound, high-interest loan, he added.Stroll, a Canadian investor who owns a Formula One racing team, won the backing of Aston Martin’s board. He edged out rival suitor Geely, which also sought to invest in the sports-car maker. Stroll’s consortium will pay 182 million pounds for a 16.7% stake, before contributing to a rights issue supported by major shareholders to raise a further 318 million pounds.Nevertheless, the need for a cash influx sums up the disappointing turn of events since Aston Martin went public in October 2018. At the time, the company was touting a turnaround under Palmer, a former Nissan Motor Co. executive, helped by private-equity backing.Aston Martin shares jumped 22% to 490 pence as of 9:35 a.m. Friday, the most since its October 2018 initial public offering. Still, the stock remains about 74% lower than the listing price.Fashion TycoonStroll, 60, made his fortune building and selling two fashion brands: He and his partner, Silas Chou, took Tommy Hilfiger public in 1992 and later sold it to private-equity buyers. In 2011, they listed the Michael Kors brand, eight years after acquiring majority control. Chou is also part of Stroll’s Aston Martin consortium.Stroll also led a group of investors who took over the Force India Formula One team after it was pushed into administration. Renamed Racing Point, it is based in the U.K. and gets its engines from Mercedes-Benz. Stroll’s son Lance is a driver for the team. Aston Martin’s naming partnership with Red Bull Racing will end after the 2020 season.Stroll’s presence will help steer the company toward its aim of becoming a luxury-goods company, Palmer said. “It’s going to change the dialogue in the boardroom,” he said. “The dialogue will change from automotive to luxury.”However, investment in electric vehicles will be delayed beyond 2025, bucking a trend that occupies most other carmakers.Morgan Stanley, Deutsche Bank and JPMorgan advised Aston Martin. Stroll was advised by Barclays.Bumpy RideAt the time of its IPO, Aston Martin was pitched as a peer to Ferrari NV, the Italian supercar maker. The company built a new factory in Wales to make the DBX -- an optimistic signal for the British car industry, which has been reduced by Brexit and an industry shift away from diesel engines.But the image quickly evaporated as sales slumped and dealers struggled to offload the entry-level $150,000 Vantage. The DBX, which will cost $189,000 and is set to begin production in the second quarter, may also be late to the competition. Prestige brands like Lamborghini, with the Urus, and Bentley’s Bentayga have already established themselves in the ultra-luxury SUV market.(Updates with bond move in third paragraph)\--With assistance from Joe Easton.To contact the reporters on this story: Siddharth Philip in London at email@example.com;Tommaso Ebhardt in Milan at firstname.lastname@example.orgTo contact the editors responsible for this story: Anthony Palazzo at email@example.com, ;Aaron Kirchfeld at firstname.lastname@example.org, John BowkerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
European shares are up 0.3%, although U.S. futures still imply a weaker open and Asian shares gave up their efforts to rise and closed 0.3% lower. Analysts reckon that when Chinese markets reopen next week and catch up with all the overseas falls, China's central bank will be on hand to supply liquidity in dollops and also prevent the yuan weakening beyond 7 to the dollar. Similar picture with South Korea’s upbeat industrial output figures; they date to December.
Shares soar in Aston Martin Lagonda after billionaire Lawrence Stroll bought a stake as part of a planned £500m rescue deal.
Famed for being fictional secret agent James Bond's car of choice, the 107-year old company's share price has plummeted since floating in October 2018 and it has come late to the lucrative sport utility vehicle market which boosted rivals. The Financial Times reported that Chinese carmaker Geely and Canadian billionaire Lawrence Stroll are each offering to invest around 200 million pounds in return for 20% of the firm and a place on the board, adding that Aston could make an announcement as soon as Friday. A spokesman for Aston Martin declined to comment, referring to remarks made this month that it is holding discussions with potential strategic investors "which may or may not involve any equity investment into the company".
News that potential investors are lining up has given Aston Martin a boost, but is it enough for longer-term success?
The Chinese group is conducting due diligence on the 107-year-old UK business, the cars of which are the drive of choice for fictional British secret agent James Bond, the FT reported, citing four people familiar with the discussions. News of Geely's interest comes a month after Aston Martin confirmed it was in early talks with potential investors as it launched a review of its funding.