AML - stock - 31/01/2020 - London Stock Exchange - logo Aston Martin Lagonda - Aston Martin Red Bull Racing - cover

Aston Martin Lagonda big deal (16.7 percent stake by Stroll consortium) & [V6 hybrid] F1 works team 2021 Débrief

31/01/2020 - Ewen LJ Team Principal DESIGNMOTEUR - Business - , , ,

On arrive au terme du mois de janvier, avec la big breaking news mélant motorsport and business. La firme Aston Martin Lagonda reçoit du patron de l’écurie Racing Point F1 Team, un fort montant, et va entrer en F1 dès 2021. Débrief by D[M] Business.

Aston Martin big deal (16.7 stake% by Stroll)

Aston Martin was floated in 2018 with a valuation of £4.5 billion, but based on today’s share issue is currently worth around £1bn.

accordting to Autocar co uk

Aston Martin Lagonda to need £ for speed growth via IPO

D’abord pour remettre en contexte, Aston Martin Lagonda, le constructeur automobile haut de gamme, a annoncé le 29 août 2018 son intention de ‘to float on London Stock Exchange’, via ‘Initial Public Offering’ (IPO), bouclant ainsi son redressement après avoir accru ses volumes et ses modèles, et renoué avec les bénéfices.

Après des mois de discussions et d’entretiens avec de nombreux investisseurs, le team business de l’entreprise Aston Martin Lagonda a officialisé le ‘big deal’.

En ce 31 janvier 2020, le consortium mené par Lawrence Stroll (Racing Point F1 Team owner) &  Anthony Bamford of JCB (Joseph Cyril Bamford excavators) fame, obtient 16,7%, today, des parts du constructeur automobile Aston Martin Lagonda.

‘Stroll and friends including Anthony Bamford of JCB fame, are pumping in a whopping £182m in return for a 20pc stake, and a further £318m is being raised from shareholders, taking the total cash injection to £500m’

Aston Martin & Red Bull Racing F1 circus by 2020

Par conséquent, pour la saison de F1 2020, Aston Martin poursuivra son fier sponsorship de l’écurie Red Bull Racing.

La monoplace RP19 est motorisé par le bloc Power Unit Mercedes-AMG M10 EQ Power+, rebadgé ‘BWT (Best Water Technology) Mercedes’, 1.6L direct injection V6 turbo engine, héritage de l’écurie Sahara Force India F1 Team, en partenariat avec le motoriste Mercedes-AMG (Aufrecht Melcher Großaspach), dont le moteur M10 Power Unit Mercedes-Benz PU106C Hybrid est préparé par le team Mercedes AMG HPP (High Performance Powertrains) en interne, en tant que fournisseur et proposé aux écuries clients : Mercedes-AMG Petronas F1 Team, Racing Point F1 Team, ROKiT Williams Racing, et prochainement le team McLaren Racing F1.

[V6 hybrid] F1 works team 2021

Aston Mart’in F1 circus by 2021

L’écurie ‘Racing Point F1 Team’ deviendra ‘Aston Martin F1 works team’ à partir de la saison 2021.

Le développement d’un moteur V6 modulaire et doté de capacités hybrides se poursuit, ce qui permettra aux voitures de base by Aston Martin d’être disponibles en tant que variantes hybrides.

‘Traditionally, changing a team name can be difficult in F1 as it requires various approvals. However, it can be more straightforward for Racing Point given their smart choice of initial name.

Currently, they are known as Sport Pesa (their title sponsor) Racing Point, with the point represented by full stop, so it looks like Sport Pesa Racing when written. They can do the same thing with Aston Martin to become Aston Martin Racing (full stop).’

Formula One Digital Media, quote excerpt ‘Why Aston Martin-Racing Point deal makes sense for all concerned’ via formula1.com

Under the hood Aston Martin 2020 Big deal by Stroll…

AML - stock per day - 31/01/2020 - London Stock Exchange - logo Aston Martin Lagonda - cover
AML – stock per day – 31/01/2020 – London Stock Exchange – logo Aston Martin Lagonda – cover

A consortium led by Stroll will pay 182 million pounds ($239 million) for a 16.7 percent stake, while a subsequent rights issue supported by major shareholders including Stroll will raise a further 318 million pounds

Automotive News

Under agreement, Stroll’s Racing Point will become the Aston Martin F1 works team from the 2021 season.

Automotive News
  • A proposed placing of 45.6m new ordinary shares in the capital of the Company at a price of £4.00 per share to the Consortium (the ‘Placing’) to raise £182m, representing 16.7% of the post-Placing issued share capital of the Company.
  • A subsequent proposed underwritten rights issue to raise £318m (the ‘Rights Issue’) to be launched after the publication of the Preliminary Results for 2019.
  • Prestige/Strategic European Investment Group (SEIG) and Adeem/Primewagon (the ‘Major Shareholders’) who together own c.61% of the issued share capital of the Company as at the date of this announcement and who are expected to own c.50.5% following the proposed Placing have irrevocably undertaken to vote in favour of the Placing and the Rights Issue. Prestige/SEIG and Adeem/Primewagon have also irrevocably undertaken to take up 100% and at least 50% of their rights respectively.
  • The Consortium will irrevocably undertake to take up in full its rights under the Rights Issue, following completion of the Placing to it for a total equity investment of approximately £235m.
  • The net proceeds from the proposed Placing and Rights Issue will be used to improve liquidity and finance the ramp up in production of DBX and the turnaround of the Company’s performance.
  • As a condition of the Consortium’s investment, Mr. Stroll will join the Board and become Executive Chairman upon completion of the Placing.
  • Mid-engined cars are a core part of Aston Martin Lagonda’s future. As part of this, an enhanced approach to F1 is considered important. Aston Martin Lagonda and ventures affiliated to the Consortium have agreed to collaborate in pursuit of driving the successful execution of the reset plan.

As part of this, Aston Martin Lagonda has entered into a legally binding termsheet under which the Racing Point F1 team will become the Aston Martin F1 works team with effect from the 2021 season. This agreement is for a 10-year initial term and Aston Martin Lagonda will receive an economic interest in the team.

  • For the 2020 F1 season Aston Martin will continue with its proud sponsorship of the Red Bull Racing F1 Team.
  • The technology partnership between Aston Martin Lagonda and Red Bull Advanced Technologies will continue until Aston Martin Valkyrie is delivered.

Investment in electric vehicles will be delayed beyond 2025, however the mid-engined portfolio remains a key focus for the Company starting with Valhalla in 2022.

  • Successfully launching DBX in Q2, which has received extremely positive media reviews and a rapidly building order book since opening in November 2019.
  • Successfully relaunching Vantage including the Roadster derivative in the spring of 2020 and starting Aston Martin Valkyrie deliveries later in the year
  • Reducing the operating cost base by £10m on an annualised basis, with £7m in 2020, after one-off costs broadly offsetting expected cost increases due to the new St Athan plant.

‘The difficult trading performance in 2019 resulted in severe pressure on liquidity which has left the Company with no alternative but to seek substantial additional equity financing. Without this the balance sheet is not robust enough to support the operations of the group. Notwithstanding recent weak trading, the strength of the Aston Martin brand and our expanding portfolio of cars has allowed us to attract a strong new partner in Mr. Stroll to support the turnaround of the business.’

Penny Hughes, Chair (2019) Aston Martin Lagonda

‘As we announced on 7 January 2020, the past year has been a regrettably disappointing and challenging time for the Company.



Despite our continued efforts, the difficult trading conditions and resulting poor performance in 2019 has put the Company in a stressed position with severe pressure on liquidity and affected our ability to deliver against our original plan.


Today’s fundraising is necessary and provides a platform to support the long-term future of the Company. Mr. Stroll brings strong and proven expertise in both automotive and luxury brands more widely which we believe will be of significant benefit to Aston Martin Lagonda.



Following a comprehensive review, today we announce a series of immediate actions to reset, stabilise and de-risk the business, positioning it for controlled, long-term profitable growth. These include rebalancing supply-demand dynamics, reducing capital expenditure and the re-phasing of some future product launches, together with cost-efficiency initiatives.



We are focused on turning around performance, restoring price positioning and delivering a more efficient operational footprint. We will deliver some exciting new products this year with the much-anticipated DBX during Q2, Vantage Roadster in the spring and Aston Martin Valkyrie deliveries starting in H2.



We have also announced plans to leverage a new motorsport collaboration with Racing Point to enhance the execution of the plan. I would like to thank Red Bull Racing, who we will continue to sponsor this year, for their partnership and support in us being able to say this today.



The actions announced today will allow us to implement and deliver on our reset plan and provide Aston Martin Lagonda with a sustainable platform for the future.’

Andy Palmer, President and Group CEO, Aston Martin Lagonda

‘I am very pleased that I, and my partners in the Consortium, have reached agreement with the Board and major shareholders to make this significant long-term investment. Aston Martin Lagonda makes some of the world’s most iconic luxury cars, designed and built by very talented people. Our investment announced today underpins the Company’s financial security and ensures it will be operating from a position of financial strength.



On completion of the £500m of fundraising I look forward to working with the Board and management team in Aston Martin Lagonda to review and improve each aspect of the company’s operations and marketing; to continue to invest in the development of new models and technologies and to start to rebalance production to prioritise demand over supply.



I, and my partners, firmly believe that Aston Martin is one of the great global luxury car brands. I believe that this combination of capital and my experience of both the motor industry and building highly successful global brands will mean that, over time, we fulfil Aston Martin Lagonda’s potential.’

Lawrence Stroll, Racing Point F1 Team

Aston Martin 2020 Product plan

  • Aston Martin’s mid-engined core car (Vanquish) is now expected to be revealed following the unveiling of the Valhalla in 2022.
  • Development of a fuel efficient, modular V6 engine with hybrid capabilities continues, which will support Aston Martin core cars being available as hybrid variants from the mid-2020s.
  • The Lagonda brand will now be relaunched no earlier than 2025 (previously 2022) and while development of Rapide E is substantially complete, the programme has been paused pending a review
  • Production of the Aston Martin Valkyrie is still expected to ramp up through H2 2020
  • Deliveries of the Goldfinger DB5 Continuations are due to start in 2020 as well as the DBS GT Zagatos, which will complete the DBZ Centenary Collection
  • The recently announced V12 Speedster will be unveiled later this year with deliveries due to start in Q1 2021
  • The Aston Martin Valkyrie AMR Pro is still expected to be revealed in 2021
  • Valhalla is now expected to be unveiled in 2022

“I’m getting too old for all-nighters, but let’s just say it was a late night! It has been time-consuming, but as I sit here now the company is better funded than it has ever been in the past, with a good product cadence in plan as per the second century plan and with a commitment to build our own V6 hybrid in the UK. That is compelling.”


Andy Palmer, President and Group CEO, Aston Martin Lagonda, on Aston Martin’s investment deal and future, via Autocar co uk

Red Bull Racing & Aston Martin!?

Aston Martin Red Bull Racing - 2020 - cover
Aston Martin Red Bull Racing – 2020 – cover

‘Following the Aston Martin Lagonda announcement earlier today, the Team can confirm that the manufacturer will remain title partner until the end of the 2020 season but this contract will not be extended past the end of the current term.

 

Red Bull Racing has agreed to release Aston Martin from its Formula One exclusivity clause which in turn has allowed it to generate the necessary investment required to re-finance and pursue alternative opportunities within the sport.

 

Red Bull Advanced Technologies will continue to work with Aston Martin in order to deliver the Valkyrie hypercar, with the first cars scheduled for delivery at the end of the year.

We thank Aston Martin for their support over the past four years in which time we have achieved 12 wins, 50 podiums and six pole positions together.

We wish Aston Martin’s employees and shareholders all the best for the future and our focus remains on working together throughout the 2020 season and ending our partnership on a high.’


Red Bull Racing

Red Bull Advanced Technologies &  Aston Martin!?

Red Bull Advanced Technologies - Aston Martin - 2020 - cover
Red Bull Advanced Technologies – Aston Martin – 2020 – cover

‘Following the announcement that Aston Martin’s Title Partnership with Red Bull Racing will conclude at the end of the 2020 Formula One season, Red Bull Advanced Technologies will continue to work with Aston Martin on the Valkyrie project.


Red Bull Advanced Technologies and Aston Martin entered into an Innovation Partnership in 2016 to design the Aston Martin Valkyrie hypercar, which completed its first running demonstration at last year’s British Grand Prix.


The development of the two-seater mid-engine Valkyrie remains a key project for Red Bull Advanced Technologies, with the first batch of the 150 road-going cars due to be delivered to customers at the end of the year.’

Red Bull Advanced Technologies

Source et images :
Aston Martin Lagonda Global Holdings

Red Bull Racing
Red Bull Advanced Technologies

AML – stock – 31/01/2020 – London Stock Exchange –
– cover picture via MSN Finance

via Automotive News
quotes via Autocar co uk

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