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Aston Martin shareholder offers to up stake
Posted on Friday, 19 July 2019 14:11
Strategic European Investment Group, which owns a 31.0 per cent stake in UK-headquartered automotive manufacturer Aston Martin Lagonda, said it intends to purchase a further 3.0 per cent of the business.

Under the terms of the transaction, the buyer announced a planned purchase of 6.84 million shares in the business at GBP 10.00 each, thereby valuing the deal at GBP 68.40 million.

As a result of the size of Strategic European Investment Group’s existing holding, it is required to make an offer to all Aston Martin shareholders.

However, it noted that Prestige Motor Holdings and Preferred Prestige Motor Holdings, which own a combined 31.0 per cent of the auto maker, have already agreed not to accept the approach.

The acquiror added that once the offer becomes unconditional, it is not required to make a mandatory offer for the remaining shares it does not already own in the business and will not be able to buy any more Aston Martin stock for 12 months following closing.

Based on the target’s close of GBP 9.63 on 18th July, the last trading day prior to the deal being announced, the offer represents a 3.8 per cent premium.

Shares were trading up at GBP 9.98 as of 14:25 on 19th July.

Aston Martin has only been publicly traded for a relatively short time, having floated in October of last year, raising GBP 1.08 billion in the process.

After finishing at GBP 18.10 on its opening day, its share price has declined fairly consistently in the ensuing months, reaching a nadir of GBP 8.19 on 14th May.

Claiming to be the world’s only independent luxury car group with more than 100 years of design and automotive excellence, the group’s products are sold under the Aston Martin and Lagonda brands.

According to Zephyr, the M&A database published by Bureau van Dijk, the last time a publicly traded automobile manufacturer was acquired worldwide was in September of last year, when Alliance Rostec Auto upped its stake in Russia-based AvtoVAZ from 83.5 per cent to 96.6 per cent.

© Zephus Ltd