A consortium led by billionaire Lawrence Stroll will invest £182 million as part of a rescue deal to save struggling luxury car brand Aston Martin, with Stroll to assume the role of executive chairman of the business.
The total value of the rescue deal is thought to be around £500 million, with existing investors supplementing the consortium's funds.
The deal will bolster Aston Martin's finances after the carmaker had issued a profit warning earlier in January, with annual earnings expected to decline by almost 50 per cent on the previous year.
Earnings were expected to fall between £130 million and £140 million, compared to the £247.3 million reported for last year.
Core retail sales to consumers were up by 12 per cent on the previous year but wholesale volumes were down by seven per cent.
Stroll, who owns Racing Point Formula 1 team, will have the team rebranded under Aston Martin from 2021 onward as part of the deal, with his consortium taking on a 20 per cent stake in the business.
Stroll will also sit as executive chairman, with incumbent chairman Penny Hughes to step down after the deal is finalised.
Hughes said: "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."
