Deal to take 40 per cent equity stake in Aston Martin could be concluded this week
Aston Martin has confirmed that it is in advanced talks with investors for an equity injection.
A document sent to bond holders in the firm today reported: "Aston Martin, with the support of its shareholders, confirms that discussions are at an advanced stage to secure a capital increase which will ensure it can deliver its medium and long-term growth plans."
Both Indian conglomerate Mahindra & Mahindra and Italian buyout firm Invest Industrial are reported to be vying to invest in Aston, with the former offering a significantly greater cash injection and the latter offering less financial support but a technical partnership with Mercedes and AMG.
Initial reports suggested that Invest Industrial were favourites to secure the £250m deal, but sources now suggest that Mahindra & Mahindra has moved ahead in negotiations and is the favoured partner. The winning bidder is expect to own 40% of the company and have 50% of the voting rights.
Financial analysts are reporting that the admission to bond holders that talks are underway signals that a deal is likely to be imminent, and could be concluded within a week.