StockMarketWire.com - Aston Martin detailed plans to raise a combined £500m through a rights issue and an equity placing with a consortium led by Lawrence Stroll, part-owner of Formula 1, who would replace current chairman Penny Hughes.
The consortium would invest £182m in the company for a 16.7% stake, while the rights issue to raise £318m would be launched after the release of the company's results for 2019.
The proceeds would be used to improve 'liquidity and finance the ramp up in production of DBX and the turnaround of the company's performance,' Aston Martin said. As part of the move, Stroll had agreed to provide £55.5m of short-term working capital support, which would be refunded after the proposed equity placing was completed, ending the company's need to draw down $100m of high-interest debt. In an effort to turnaround performance, Aston Martin said it would be scale back production to build a stronger order book and regain price positioning; launch DBX in the second quarter, relaunch Vantage including the Roadster derivative in the spring of 2020 and start Aston Martin Valkyrie deliveries later in the year.
The company said it aimed to reduce the operating cost base by £10m on an annualised basis, with £7m in 2020.
At 9:40am: [LON:AML] Aston Martin Lagonda share price was +87.65p at 490.35p
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