Aston Martin shares soar on China's Geely becoming No. 3 shareholder

Aston Martin’s shares jumped nearly 25 per cent on Thursday after the luxury carmaker announced a 234-million-pound investment by China’s Geely, doubling the automotive firm’s stake to make it the third-largest shareholder. 

Geely will acquire about 42 million ordinary shares from Chairman Lawrence Stroll’s Yew Tree, currently Aston Martin’s largest stakeholder, at 335 pence each and subscribe for another 28 million shares at the same price, raising about 95 million pounds in cash for the British firm.

Aston Martin shares, which closed at 231.2 pence on Wednesday, were trading at 267.8 pence at 1056 GMT, having risen as high as 288.0 pence.

For Aston Martin, the preferred ride of fictional secret agent James Bond, the investment paves the way to secure its long-term future and cut its net debt, which stood at 868.1 million pounds at end-March.

Earlier this month, the century-old company, which has gone bankrupt seven times in its history, said 2023 would be its “peak year” for capital spending. Geely owns multiple brands including British sportscar maker Lotus, Zeekr, Volvo.