SAUDI ARABIA TAKES MAJOR STAKE IN ASTON MARTIN

ASTON Martin shares tumbled after it unveiled a cut-price share sale to help reduce its debt pile.

The luxury carmaker will sell 559m new shares at a price of 103p each, a nearly 79pc discount to its closing price last Friday and lower than analysts predicted, in order to raise nearly £576m.

The stock slumped 15.6pc, or 75.1p, to 405p.

The share sale, which is expected to be completed by September 27, forms part of Aston’s plans to raise £654m, half of which will be used to pay down debt.

The deal involves Saudi Arabia’s Public Investment Fund (PIF) becoming a major shareholder in the company. Saudi Arabia will pay £78m for a 16.7pc stake in Aston Martin, making it the

second-largest investor. The fund also owns Premier League football team Newcastle United.

Aston is attempting to lower its debt pile, which at the end of June was nearly £1.3bn.

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