Geely takes stake in Aston Martin

Jessica Thompson

Zhejiang Geely Holding Group said it had taken a 7.6 percent stake in Aston Martin.

The purchase is another move by Li Shufu, Geely’s billionaire owner, to expand his automobile empire. Geely also owns Volvo and Lotus Cars and has a stake in Daimler.

“We look forward to exploring potential opportunities to engage and collaborate with Aston Martin as it continues to execute its strategy to achieve long term, sustainable growth and increased profitability,” Geely Group CEO Donghui Li said in a statement on Friday.

Geely did not provide a transaction value. Based on Aston Martin’s closing share price on Sept. 29, the stake is valued at 66.6 million pounds ($74 million).

Aston Martin also said on Friday it had completed a 654 million pound capital raise to help lower its debt and invest in new models.

Geely has previously shown interest in buying a stake in Aston Martin but talks with the automaker were unsuccessful.

Previous reports have said Geely is interested in technology sharing with Lotus.

Reuters contributed to this report

EDITOR’S NOTE: The value of Aston Martin has been corrected.

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