PIF to become Aston Martin's second-largest shareholder

Logo of Public Investment Fund (PIF)

Aston Martin Lagonda, the UK’s carmaker, said will raise £650 million ($773.15 million) as the Public Investment Fund (PIF) will buy shares worth £78 million, and will take part in a £575 million rights issue.

Accordingly, the Saudi sovereign wealth fund will become the second-largest investor in the car manufacturer with a 16.7% stake after Yew Tree, which holds 18.3% of the company. On the other hand, the existing shareholder Mercedes-Benz will be the third-largest shareholder with 9.7% of capital, the British carmaker said in a statement.

The fundraising was aimed at repayment of debts, and the acceleration of Aston Martin’s long-term growth potential.