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Aston Martin share price plunges 14%

·Business Reporter, Yahoo Finance UK
·2 min read
General view of the Aston Martin DB-10
According to Autocar, a company linked to a Saudi Arabian investment fund, and another linked to a fund on the West Coast of America are the two main contenders vying for a stake in Aston Martin. Photo: Press Association

Aston Martin (AML.L) fell as much as 14% on Thursday amid reports the automotive company is looking to find funds to shore up its finances.

The carmaker, a favourite of the fictional fast-living spy James Bond, may offer a seat on its board as it aims to attract investment for a stake estimated to be worth more than £200m ($242m).

According to Autocar, a company linked to a Saudi Arabian investment fund, and another linked to a fund on the West Coast of America are the two main contenders for the funding.

Sources could not confirm a timeline on when talks could be concluded, beyond suggesting that there was significant pressure to complete the move as soon as possible to safeguard Aston Martin's near-term outlook.

Aston Martin, which was established in 1913 and has been declared bankrupt seven times in the past, currently has a debt pile of around £1.2bn.

Its pre-tax losses more than doubled to £111m in the first quarter of the year, even as sales rose 4%.

The luxury auto firm is currently going through a turnaround plan under billionaire owner Lawrence Stroll, who rescued the firm from bankruptcy in 2020. The plan includes a vital injection of cash, as well as clearing high dealer inventories.

The company is also looking at shifting to electric vehicles amid a global effort to combat carbon emissions.

An Aston Martin spokesman said: “Aston Martin does not comment on rumours or speculation.”

Read more: 'Total chaos' at Heathrow as airport cancels 30 flights

The stock has lost 96% of its value since its initial public offering (IPO) on the London Stock Exchange in 2018, when it was valued at $4bn.

Aston has said previously that it does not expect prospects to improve this year, however, it expects its new DBX SUV to represent over 50% of sales going forwards.

Watch: Aston Martin chases after Ferrari in EV push