Aston Martin launches £575m rights issue driven by Saudi Crown Prince MBS – newsdubai

Luxury carmaker Aston Martin has confirmed a £575m rights issue which will be backed by a fund controlled by Saudi Arabia’s de facto leader.

It told shareholders on Monday that it will launch the rights issue – a share offer to existing investors intending to raise fresh cash – as part of a previously announced £653m fundraising drive.

Aston Martin said the new funding will be used to pay down its debt and to improve the firm’s liquidity.

The automaker said its rights issue has received “irrevocable commitments” from investors including Saudi Arabia’s Public Investment Fund (PIF), Yew Tree Consortium and Mercedes-Benz.

The PIF, which is controlled by Crown Prince Mohammed bin Salman, is Saudi Arabia’s sovereign wealth fund, one of the largest in the world.

It has about half a trillion dollars to throw around, although its investments often attract controversy.

The foundation’s takeover of Newcastle United Football Club last year – it provided 80% of the money for the deal – sparked protests outside the Premier League side’s stadium over Saudi Arabia’s human rights abuses.

It is understood that PIF will become the company’s second largest shareholder after the fundraising.

Aston Martin said shareholders representing over a third of the company’s share capital have said they will vote in favor of the rights issue ahead of the general meeting on Thursday.

The carmaker’s board said it believes the capital raising can support its targets of approximately 10,000 wholesale sales, £2 billion in revenue and £500 million in adjusted earnings in the 2024-25 financial year.