Aston Martin has signed a binding agreement to sell its minority stake in the Aston Martin Aramco Formula One Team.
While the automaker lends its name to the team, Aston Martin's shares only amount to 4.6 percent.
The sale won't have a huge effect on the F1 team's day-to-day operations, but it will offer a welcome influx of cash for the struggling automaker.
Aston Martin, the British sports car manufacturer owned by Lawrence Stroll, is selling its stake in the Aston Martin Aramco Formula One Team, which Stroll also owns. Well, technically, it was Aston Martin Lagonda Global Holdings PLC that agreed to divest its ownership stake in the Formula 1 outfit. The news was confirmed earlier this week, as the company signed a binding letter of intent with a buyer in place.
While the official buyer hasn't been named, PlanetF1 reported that Yew Tree Investments, the Stroll-led consortium, is set up to increase its ownership shares from 27.67 percent to 33 percent. That information tracks with reports that the automaker's stake in the F1 team was valued at $146 million, or 4.6 percent of its $3.2 billion valuation.
The influx of cash comes at a crucial moment for the car-making side of the brand, with Aston Martin issuing a profit warning as recently as July 30, according to Hagerty. The company reportedly cited U.S. tariffs and China’s economic slowdown, which will result in Aston Martin barely breaking even this year.
Thankfully, for fans of the sport, there's no need to worry about learning a new F1 team name due to this, as the Aston Martin name will stick around through a long-term commercial agreement.
You Might Also Like
Comments