Aston Martin denies talks about Saudi privatization

Aston Martin Lagonda could be delisted from the London Stock Exchange in the short term. Sources report that the F1 team's parent company may soon end its stock market listing, although Aston Martin denies talks about privatization with Saudi Arabia.

The Financial Times reports that Lawrence Stroll, the executive chairman of Aston Martin Lagonda, has held exploratory talks with the Saudi Public Investment Fund about privatizing the company. The PIF currently already owns a 19.5 percent stake in the car brand.

However, a spokesperson for Aston Martin strongly denies this. “Aston Martin is not in talks with PIF about privatization,” was the response to PlanetF1. Notably, the spokesperson did not deny that the company plans to end its stock market listing.

It has been a turbulent year for Aston Martin. The share has lost more than 98 percent of its value since its IPO in 2018. The company's value plummeted from 4.95 billion dollars in October 2018 to 893 million dollars now. In the third quarter, the company reported that it no longer expects positive cash flow in the second half of this year.

To improve liquidity, Aston Martin sold its minority stake in the F1 team for 108 million pounds in the third quarter. The car brand remains commercially linked to the team through a long-term brand agreement. Other major shareholders include Geely chairman Shu Fu Li (14.09 percent), Swiss investor Ernesto Bertarelli (13.82 percent), and Mercedes (7.547 percent).

CEO Adrian Hallmark stated earlier this month: “This year was characterized by significant macroeconomic headwinds, particularly the American target=”_blank”>continuing impact of tariffs and weak demand in China. In response to these market dynamics, we have taken proactive steps to strengthen our position.”