Saudi’s PIF to become second-largest Aston Martin stakeholder

Aston Martin has announced a “game changing” finance deal which is set to see Saudi Arabia’s sovereign wealth fund take on a 17% stake.

Aston Martin Lagonda has been on the search for fresh investment, which it seems to have now secured, and plenty of it at that.

Saudi Arabia’s investment fund, PIF, which owns Aramco, the current title sponsor of the Aston Martin Formula 1 team, will now step up its involvement further with the Aston Martin organisation.

The fundraising effort, alongside PIF, also included existing investors, such as Lawrence Stroll’s Yew Tree Consortium and Mercedes-Benz. A total of £653m is targetted from the complete pool of investment.

The deal will reportedly see PIF take on a 16.7% stake in Aston Martin, making them the second-largest shareholder behind Stroll’s consortium with a now reduced 18.3% share.

Mercedes’ share drops from 11.7% to 9.7% as part of the deal.

PIF were also a part of a refinancing effort from the McLaren Group in 2021, now holding a stake in the firm.

With ex-Ferrari boss Amedeo Felisa now in place as Aston Martin CEO, the addition of PIF’s funding was described as “game changing” by Stroll.

“Overall, this is a game changing event for Aston Martin, supporting the delivery of our strategic plans and accelerating our long-term growth potential,” he said in a statement, quoted by Motorsport.com.

“It transforms our balance sheet, liquidity and cashflow profile and provides greater clarity on our pathway to become sustainably free cash flow positive and create significant shareholder value.

“With the new leadership team in place, led by Amedeo Felisa, we have the right team and the right strategy to fully realise the long-term potential of Aston Martin.”

Stroll brought the Aston Martin name back to Formula 1 as of the 2021 season, rebranding his Racing Point team to take on the identity of the luxury car manufacturer.

And though the team finds itself P9 in the 2022 Constructors’ Championship, some way off the target of title glory, Stroll explained that the return to Formula 1 has “ushered in an new era” for the brand.

“Aston Martin’s return to the pinnacle of motorsport with the Aston Martin Aramco Cognizant F1 team, has also ushered in a new era for our iconic British brand,” he continued.

“Our focus on building brand equity and unleashing the potential of Aston Martin is already delivering growing demand from a new generation of customers, with more than 60% new to…