Zhejiang Geely Holding Group has declared that, as part of a new partnership agreement, it has increased its stake in the British automaker to 17%, up from the 7.6% it acquired in Aston Martin Lagonda last September. According to the London Stock Exchange, the Chinese corporation spent 234 million British pounds to increase its share.
As a result of this transaction, Geely Holding has surpassed Saudi Arabia’s Public Investment Fund and Lawrence Stroll to become Aston Martin Lagonda’s third-largest shareholder. Geely now holds a larger interest than Mercedes-Benz, which currently owns 12% but plans to increase it to 20% by the end of 2023.
Related: Geely’s Chinese Billionaire Mulls Greater Aston Martin Stake
However, the new deal prevents Geely from increasing its share until August 2024, but it does allow it to designate one non-executive director to serve as a shareholder representative and another as an observer. About the acquisition, Eric Li, the Chairman of Geely Holding 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 (2022), 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 to achieve its full potential.”
Commenting on the development, Lawrence Stroll, the Executive Chairman of the board at Aston Martin Lagonda 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. Geely can offer us a deep understanding of the key strategic growth market of China as well as the opportunity to access their range of technologies. Geely shares our vision for Aston Martin and wants 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.”
Geely has a number of shares in key global automakers including Daimler where the Geely Boss Li Shufu is the largest single shareholder. The Chinese auto giant also has a controlling share in Malaysian automaker Proton and acquired a number of other brands including Volvo, Lotus, and Landon Black Taxi company.
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