E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel
  • Need Help?

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

What's Hot

What Closing Costs Do Home Buyers Have?

February 25, 2023

What Is Realtek HD Audio Manager

February 2, 2023

A Basic Guide To Cell Tower Leasing

February 2, 2023
Facebook Twitter Instagram
E Amazings
  • Home
  • Automotive
  • Business
  • CBD
  • Crypto
  • Education
  • Entertainment
  • Fashion
  • Finance
  • Health
  • Home Improvement
  • Law \ Legal
  • News
  • Shopping
  • Sports
  • Technology
  • Travel
  • Need Help?
Facebook Twitter Instagram
E Amazings
You are at:Home»Automotive»Aston Martin To Walk The Poison Pill Tightrope To Shore Up Finances
Automotive

Aston Martin To Walk The Poison Pill Tightrope To Shore Up Finances

By July 20, 2022No Comments3 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter Pinterest WhatsApp Email

[ad_1]

By DCB Editorial, July 20, 2022

A few days ago a well-known automotive car news site revealed that Aston Martin was considering adopting electric vehicle platforms from Mercedes, Lucid, and or Rimac. We believe that this puff-piece article was an attempt by Aston Martin to get a quick flutter on the stock markets. The stock markets, as complex as they have become, operate on a very simple formula… confidence. And if the company is listed on the stock markets, a positive news cycle on a particular firm in whatever industry can ignite a temporary rise in share value.

We know straight away Rimac will never supply Aston Martin with an electric vehicle platform, why? Rimac has an established relationship with the Volkswagen Group. Mercedes will step in to supply Aston Martin with electric vehicle technology because Mercedes currently has a shareholding in Aston Martin.

The link with Lucid is feeding the dog a bone. In this case, there is no dog and no bone. However, Saudi Arabia’s Sovereign Wealth Fund has heavily invested in Lucid. And guess what? Saudi Arabia will invest in Aston Martin by pumping in £73M GBP worth of investment in exchange for 16.7 percent shareholding.

The funding by Saudi’s Public Investment Fund will form part of an additional £575M GBP investment strategy expected to take place later this year. The £575M GBP will be raised through a rights issue. A rights issue gives shareholders the exclusive right to buy shares at a discounted rate.

Key investors will reduce their shareholding by a few percent and buy back the residual shares at a discount. This is a desperate sign that the company is unable to raise funds through bank loans due to being seen as a high-risk no return venture.

The rights issue tactic is used to raise new funds from investors in the short term. However, the market may look upon a rights issue as a red signal, a sign that the company is in a perilous state. With an increased supply of shares available following a rights issue, this could be very bad news for a company’s market value.

So why are Aston Martin shareholders seeking to make the company look unattractive and to whom? Geely Automotive is apparently circling and is considering buying shares in Aston Martin. The proposed £575M of investment is chicken feed even for a low-volume supercar maker with massive ambitions to break 10,000 unit sales per year.

Aston Martin Factory, Gaydon Warwickshire

[ad_2]

Source link

Related Posts

Aston Martin Caught Up In Yet Another Storm of Its Own Making

By January 4, 2023

Ken Block, Dude, We Salute You

By January 4, 2023

The Crucial Tips To Consider When Selling Your Car Online

By Corbin BowenJanuary 3, 2023

Mercedes Morally & Ethically Compromised Over Congo Cobalt Mining

By January 1, 2023
Add A Comment

Comments are closed.

Our Picks

What Closing Costs Do Home Buyers Have?

By Corbin BowenFebruary 25, 2023

What Is Realtek HD Audio Manager

By Corbin BowenFebruary 2, 2023

A Basic Guide To Cell Tower Leasing

By Corbin BowenFebruary 2, 2023
Recent Posts
  • What Closing Costs Do Home Buyers Have? February 25, 2023
  • What Is Realtek HD Audio Manager February 2, 2023
  • A Basic Guide To Cell Tower Leasing February 2, 2023
  • Air Duct Repair 101: Everything You Need To Know February 2, 2023
  • Rashid Khan: A Nightmare For Every Batsmen January 18, 2023
  • Advantage LIC? How Budget Insurance Amendment Bill may benefit the PSU insurance giant January 5, 2023
  • The Flight Of The Dremel January 5, 2023
Archives
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • September 2021
Facebook Twitter Instagram Pinterest TikTok
© 2022 E Amazings - All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.