Aston Martin Seeks to Raise Funds by Selling Minority Stake in F1 Team
Aston Martin is selling its stake in the Formula 1 team to raise funds and support its loss-making core business, amid plans to cut 5% of its workforce.
Aston Martin Lagonda, the luxury carmaker, announced on Monday its intention to divest its minority stake in the Aston Martin Aramco Formula 1 team. This strategic move aims to support the turnaround of its loss-making core business, prioritizing long-term sustainability.
Concurrently, the Yew Tree Consortium, Aston Martin's primary shareholder, plans to increase its stake in the group to 33%. This combined action is expected to bolster the company's liquidity by over £125 million ($162 million). The consortium, led by Canadian businessman Lawrence Stroll, has a significant connection to the Formula 1 team, as his son Lance Stroll is a driver.
Aston Martin emphasized that its long-term Formula 1 sponsorship deal will remain unaffected by the sale of its stake in the team. The Formula 1 team reassured fans, stating, “A long-term contract is now in place to ensure the Aston Martin name remains at the pinnacle of motorsport for decades to come.”
Aston Martin Chief Executive Adrian Hallmark welcomed the new investment, saying it will “accelerate our progress into being a sustainably profitable company.” This development is expected to drive the company's growth and ensure its long-term financial stability.
Aston Martin is set to raise more than $161.9 million through funding from its chairman and the sale of its stake in the Formula One team he owns as it grapples with delivery delays and depressed demand in China https://t.co/rmDyQsRTPr pic.twitter.com/2kt9hgvwty
— Reuters (@Reuters) March 31, 2025
Aston Martin Lagonda recently announced a five percent reduction in its workforce, citing weak Chinese demand as a contributing factor to the company's widening losses in 2024. This development occurred shortly after Adrian Hallmark took over as chief executive, succeeding Amedeo Felisa. Notably, Hallmark is the fourth Aston Martin CEO in as many years, having previously stepped down as CEO of Bentley.
The Yew Tree Consortium's plan to increase its stake in Aston Martin above 30% would typically trigger a mandatory bid for the entire company under British takeover rules. However, the consortium is seeking an exemption from this requirement. Russ Mould, investment director at AJ Bell, commented, “Exemptions have been granted in the past, yet it feels like a takeover would be a better outcome as it would mean the car company would be free to pursue a turnaround strategy out of the public spotlight.”
Mould expressed skepticism about Aston Martin's prospects, stating, “Time after time, Aston Martin has tapped investors for more money, yet the business is arguably going nowhere.” He also criticized the decision to sell the stake in the Aston Martin Formula 1 team, saying it “screams of desperation.” However, Lawrence Stroll, the consortium's leader, countered, “These moves demonstrate that Aston Martin's place on the Formula 1 grid is as secure as ever.”
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