F1: Saudi Arabian sovereign wealth fund to become second-biggest shareholder in Aston Martin

Saudi Arabia’s sovereign wealth fund will become the second-biggest shareholder in Aston Martin as part of a £653m fundraising by the James Bond carmaker announced yesterday.

Saudi Arabia’s public investment fund (PIF) has expanded its sports investment portfolio by purchasing a stake in the Aston Martin brand, including the Formula 1 team it runs under the same name.

A 17 percent share in the parent Aston Martin business has been sold to the PIF, making it the second-largest shareholder in the business after Canadian billionaire Lawrence Stroll. Aston Martin has performed poorly financially recently, running up debts just shy of £1bn, and its F1 team is among the slowest on the F1 grid this year.

Stroll made his own investment into Aston Martin 2020, later re-branding the Racing Point F1 team he purchased in the summer of 2018. Stroll’s son Lance is employed as one of the team’s two drivers, alongside four-time world champion and climate change activist Sebastian Vettel.

‘Overall, this is a game changing event for Aston Martin, supporting the delivery of our strategic plans and accelerating our long-term growth potential,’ Stroll said.

‘It transforms our balance sheet, liquidity and cashflow profile and provides greater clarity on our pathway to become sustainably free cash flow positive and create significant shareholder value.’