Related readings:Ningde Times is reported to be considering buying a stake in Aston Martin.
According to people familiar with the matter, Aston Martin (Aston Martin Lagonda Global Holdings Plc) is making a last-ditch effort to raise new funds, and billionaire Lawrence Stroll is closest to promising to take a stake in the struggling British luxury carmaker.
The Canadian investor and owner of Formula one Racing Point is in in-depth discussions about a capital injection of about £200m ($260 million) as part of the carmaker's capital increase, according to one of the people familiar with the matter. People familiar with the matter spoke on the condition of anonymity on the grounds that the negotiations were not made public.
In addition, Chinese tycoon Li Shufu's Geely Group held preliminary discussions about a possible investment in Aston Martin, according to people familiar with the matter. Geely controls Sweden's Volvo and Britain's Lotus and has a minority stake in Daimler. Geely is mainly interested in technology-sharing deals, which could benefit businesses such as Lutes, according to people familiar with the matter.
Aston Martin's profit warning last week highlighted the carmaker's urgent need to secure new investors to help it reduce debt and finance the production of DBX sports utility vehicles. The $189000 DBX is at the heart of Aston Martin's restructuring plan, which includes doubling annual production to 14000 vehicles by 2023. Aston Martin has received 1800 orders for the model, meeting its conditions for a subsequent $100m loan.
"We are still in discussions with potential strategic investors to build longer-term relationships that may or may not involve equity investments," Aston Martin said in an emailed statement over the weekend.
A representative of Racing Point did not immediately respond to a request for comment outside working hours. A Geely spokesman could not be reached for comment.
Talks with various investors may not lead to a deal and the size of any stake sale could change, according to people familiar with the matter.
Aston Martin's shares have fallen more than 60 per cent in the past 12 months. Its sterling bonds jumped on Friday after the Financial Times reported that Geely might invest. Chinese battery maker Ningde Times may buy a stake in Aston Martin, Sky News reported over the weekend.