Currently reading: Aston Martin confirms equity talks
Aston's bond holders are told talks regarding a deal are underway; reports suggest Mahindra & Mahindra is favourite to land £250m deal for 40 per cent of the company
Jim Holder
News
1 min read
29 November 2012

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.

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J3rrYcid 22 February 2013

This was a big news last year

This was a big news last year in the auto industry, with the investment injection would mean a large chunk of the car manufacturer’s company share, and even have equal voting rights.  My friends and I were even betting on which firm would emerge as the winner in the bid, and were quite sure that the India firm would win, but we were proven wrong. In more recent news, it seems that Mahindra & Mahindra pulled out of the car manufacturer’s bid, when the Italian buyout firm confirms stake buy. It was a complete turnaround, when at first Mahindra & Mahindra firm seems to have the edge. But there were no technical partnerships for Aston Martin with Damier AG’s Mercedes, as earlier speculated.

randysavage 21 February 2013

i just hope quality is not affected

I guess that the TATA purchase of Land Rover did not really have any adverse effect as you can see from their car mats and other stuff. I doubt that Mahindra would want aston martin to lose its sheen as a prestige brand also

iamnotbritishan... 30 November 2012

i think its a prestige thing

i think its a prestige thing for Mahindra. Offer Aston Martins as a flagship to its range of cars. I don't think Aston Martin would be able to provide massive return on investment