Aston Martin Lagonda announced Monday that it plans to sell its minority stake in the Aston Martin Aramco Formula One team as part of a strategy to revitalize its struggling core business.
At the same time, the luxury automaker’s primary shareholder, the Yew Tree Consortium, intends to increase its stake in the company to 33%, according to a statement.
Together, the moves are expected to boost the group’s liquidity by more than 125 million euros ($162 million).
The consortium is led by Canadian Lawrence Stroll, whose son, Lance Stroll, drives for the Formula One team.
The company said its long-term Formula One sponsorship deal will remain unaffected.
“A long-term contract is now in place to ensure the Aston Martin name remains at the pinnacle of motorsport for decades to come,” said a statement from the F1 team.
Aston Martin Chief Executive Adrian Hallmark said the new investment will “accelerate our progress into being a sustainably profitable company.”
The company last month announced it would cut about 5% of its workforce as weak Chinese demand contributed to widening losses in 2024.
Hallmark took over as CEO late last year, replacing Italian national Amedeo Felisa.
The Briton is the fourth Aston Martin CEO in as many years, having stepped down as CEO of German-owned luxury carmaker Bentley.
By increasing its stake above 30%, the consortium would be required to make a bid for all of Aston Martin under British takeover rules. However, Yew is asking for this requirement to be waived.
“Exemptions have been granted in the past, yet it feels like a takeover would be a better outcome as it would mean the car company would be free to pursue a turnaround strategy out of the public spotlight,” said Russ Mould, investment director at AJ Bell.
“Time after time, Aston Martin has tapped investors for more money, yet the business is arguably going nowhere.”
Mould added that offloading the stake in the Aston Martin Formula One team “screams of desperation.”
However, Lawrence Stroll insisted: “These moves demonstrate that Aston Martin’s place on the Formula One grid is as secure as ever.”