Yahoo Finance Aston Martin share price plunges 14%
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.”
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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
