LONDON (UK) – Aston Martin said on Friday it would issue new shares worth up to 20% of its existing equity capital as the luxury carmaker seeks additional funds to tide over the coronavirus crisis.
New owner Yew Tree will pick up 25% of the offering, with Prestige Motors, which has steadily reduced its holding in the company having previously been the main shareholder, planning to buy about 8%, the company said.
Aston Martin, which in May posted a deep first-quarter loss after sales plunged by nearly a third, also said its retail sales and wholesales are expected to fall further in the second quarter.
The carmaker has been slashing jobs and streamlining its operations as it seeks to bring its cost base in line with its move to reduce sports car production levels.
“We are making very good progress on my first priority, the rebalancing of supply and demand and reducing dealer stock as we reset the business and restore exclusivity,” said Chairman Lawrence Stroll, the Canadian billionaire who took over the role earlier this year after taking a 20% stake.
The company has been plagued with the coronavirus crisis, much like other carmakers, with lockdown leading to a 97% annual plunge in British new car sales in April to the lowest level of any month since February 1946.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field
