REG - Aston Martin Lagonda - Substantial Investment in Aston Martin by Geely

Aston Martin Lagonda Global HoldingsAnnouncement

18/05/2023 07:15

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230518:nRSR8620Za&default-theme=true

RNS Number : 8620Z  Aston Martin Lagonda Glob.Hldgs PLC  18 May 2023

18 May 2023

 

Aston Martin Lagonda Global Holdings plc

 

Substantial Investment in Aston Martin by Geely Holding subsidary entity,
Geely International (Hong Kong) Limited ("Geely") and New Relationship
Agreement

Aston Martin Lagonda Global Holdings plc ("Aston Martin", "Aston Martin
Lagonda" or the "Company") today announces a substantial investment from Geely
Holding, China's leading independent automotive group, as part of a new
relationship agreement that seeks to support Aston Martin's growth and vision
to be the world's most desirable ultra-luxury British performance brand.

The Company provides the following update:

·      Geely has committed approximately £234 million to become the
third largest shareholder in Aston Martin:

o  Acquisition of c.42m existing Ordinary Shares from the Yew Tree Consortium
at 335 pence per share

o  Subscription for c.28m New Shares at 335 pence per share

·      The Yew Tree Consortium to remain as the largest shareholder at
c.21%, with Geely's aggregrate shareholding to increase to c.17%

·      Aston Martin Lagonda to receive approximately £95 million in
cash from the subscription of the New Shares

·      A new Relationship Agreement will give Geely the right
to appoint a Non-Executive Director to the Aston Martin Board of Directors

 

Aston Martin, Geely and the consortium of investors led by Yew Tree Overseas
Limited ("Yew Tree Consortium") announce the entry by Geely into (a) a sale
and purchase agreement (the "SPA") with certain members of the Yew Tree
Consortium, to acquire 41,575,708 existing ordinary shares of the Company
("Ordinary Shares") and (b) a subscription agreement (the "Subscription
Agreement") with the Company, to subscribe for 28,300,000 new Ordinary Shares
(the "New Shares"), in each case at a price of 335 pence per Ordinary Share
(representing a 45% premium to the closing price per Ordinary Share on 17 May
2023) (the "Transaction"). The issue of the New Shares under the Subscription
Agreement is conditional upon completion under the SPA.

Once completed, the Transaction will increase Geely's ownership in the Company
to c.17%, at which point Geely is expected to become Aston Martin's third
largest shareholder, after the Yew Tree Consortium (c.21%) and the Public
Investment Fund (c.18%).

Completion of the Transaction and admission of the New Shares to listing on
the premium listing segment of the Official List of the Financial Conduct
Authority and to trading on the Main Market for listed securities of London
Stock Exchange plc is expected to occur later this month. Following the
admission of the New Shares, the Company's share capital will consist of
727,057,075 Ordinary Shares, with the New Shares representing c.4% of the
Company's enlarged share capital.

In connection with the Transaction and conditional upon its completion:

·      Geely and the Company have entered into a relationship agreement
(the "Relationship Agreement") on similar terms to the relationship agreement
the Company currently has in place with the Yew Tree Consortium and certain
other significant shareholders. Under the terms of the Relationship Agreement
Geely will have the right, subject to holding more than 7% of the Company's
voting rights, to appoint a Non-Executive Director to the Aston Martin Board
of Directors as a shareholder representative, as well as to appoint a second
person as an observer. Geely has also agreed to a standstill until 1 August
2024 under which it will not acquire any Ordinary Shares that would result in
its total shareholding in the Company exceeding 22%.  The standstill will
fall away if an offer from Geely is recommended by the directors of the
Company or if any person not acting in concert with Geely announces a firm
offer for the Company, whether the offer is recommended by the Company or not.

·      The Yew Tree Consortium has undertaken to Geely not to acquire or
sell any Ordinary Shares for a period of 90 days from the date of the
undertaking.  It has also agreed to a standstill until 1 August 2024 under
which it will not acquire any Ordinary Shares that would result in the total
shareholding in the Company of the Yew Tree Consortium exceeding 25%. The
standstill will fall away if an offer from the Yew Tree Consortium is
recommended by the directors of the Company or if any person not acting in
concert with the Yew Tree Consortium announces a firm offer for the Company,
whether the offer is recommended by the Company or not.

Commenting on this announcement, Lawrence Stroll, Executive Chairman of the
Board, said:

"This announcement is a further significant step towards delivering our
ambition for Aston Martin.  Geely Holding, who initially became a shareholder
last year, sees tremendous potential for Aston Martin's long-term growth and
success.  They offer us a deep understanding of the key strategic growth
market that China represents, as well as the opportunity to access their range
of technologies and components.  Geely share our vision for Aston Martin and
want to be a more significant shareholder. This transaction enables the
creation of a long-term partnership with Geely - a relationship that I believe
will bring very significant value for all of our shareholders over time.

"It is a further example of how we are successfully building Aston Martin into
the most desirable ultra-luxury British performance brand through a
combination of our own product development, technology and design and also
drawing on the skills and capabilities of major international companies that
are both strategic partners and shareholders.

"I, and each member of my consortium, remain fully committed to, and excited
by, the future success of Aston Martin.  We remain on track to deliver our
strategic objectives and starting this month we will bring to market our new
portfolio of game-changing sportscars.  We remain the largest shareholders in
the Company and continue to be confident that we will build a business of
great value for all of our shareholders."

Eric Li, Geely Holding Group Chairman said:

"Our decision to increase our shareholding in Aston Martin reflects our
confidence in the company's growth prospects, its technologies and its
management team. Since first acquiring our minority holding last September, we
have worked collaboratively with Executive Chairman Lawrence Stroll and his
colleagues and now look forward to exploring joint technology synergies and
new growth opportunities to help this iconic automotive brand achieve its full
potential."

Regulatory Disclosures

This announcement includes inside information as defined in Article 7 of
the UK Market Abuse Regulation No. 596/2014 as it forms part of domestic law
by virtue of the European Union (Withdrawal) Act 2018 and is being released on
behalf of the Company by Liz Miles, Company Secretary.

Enquiries

 Investors and Analysts
 Sherief Bakr    Director of Investor Relations              +44 (0)7789 177547

sherief.bakr@astonmartin.com

 Holly Grainger  Deputy Head, Investor Relations             +44 (0)7442 989551

holly.grainger@astonmartin.com

 Media
 Kevin Watters   Director of Communications                  +44 (0)7764 386683

kevin.watters@astonmartin.com

 Paul Garbett    Head of Corporate and Brand Communications  +44 (0)7501 380799

paul.garbett@astonmartin.com

 Teneo
 Harry Cameron                                               +44 (0)20 7353 4200

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCGPUCUAUPWUQR