F1 billionaire Stroll takes control of more of Aston Martin for less after share price dives

CANADIAN billionaire Lawrence Stroll has renegotiated his Aston Martin rescue to give him more of the embattled firm for less after its share price crash.

The Formula 1 fan heads a consortium bailing out the car maker. Two months ago he agreed to sink £182m into Aston in a 400p-a-share placing and take part in a rights issue that would give new investors 20pc.

The deal was part of a rescue totalling £500m, with the balance from investors via a £317m rights issue that was due to be voted on this Monday.

However, the consortium announced after trading ended yesterday that it had renegotiated the terms following Aston’s share plunge amid the coronavirus market rout. The shares are now at 206p – half the price when the deal was struck – and the revised deal is expected to be put to a shareholders’ vote in two weeks.

“There has been a significant change in the global market environment in which Aston Martin operates,” said Mr Stroll, who will become executive chairman once the rescue is completed. “While the immediate outlook is increasingly challenging, what has not changed is our commitment to provide the company with the necessary funding it needs.”

Proceeds from the rescue will be used to cut Aston Martin’s debt and to help finance the launch of the DBX, the company’s first SUV.

Giving an update on its trading since the original bailout was announced, Aston said the pandemic has disrupted the supply of some parts from China, but has not yet affected production.

Under the new terms, a total of £536m will be injected into the company, with Mr Stroll’s Yew Tree consortium pumping in about £282m including £171m in a placing. The balance will come from a fully-underwritten rights issue at a revised price of 30p a share.