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Driving force: Billionaire takes 16pc Aston stake

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Lawrence Stroll has taken a stake in DBS maker Aston Martin

Lawrence Stroll has taken a stake in DBS maker Aston Martin

Lawrence Stroll has taken a stake in DBS maker Aston Martin

Canadian billionaire Lawrence Stroll has agreed to buy up to 20pc of Aston Martin and rename his Formula One team after the 107-year-old company.

A decline in sales of Aston Martin's luxury sports cars since it floated on the London Stock Exchange in October 2018 has put the company's shares and finances under sustained pressure.

Under the deal, Mr Stroll will pay £182m (€216m) for a 16.7pc stake, which could rise to 20pc upon completion of the company's plan to raise a total of £500m, including a rights issue from shareholders.

The brand, which is mainly owned by Italian and Kuwaiti private equity groups, has come late to the lucrative sports utility vehicle market and has struggled to keep up with rivals owned by major global car makers.

Mr Stroll will join its board as executive chairman, replacing Penny Hughes.

Reuters

Irish Independent