Aston Martin has announced that it has been approached by shareholder, Yew Tree Consortium, to invest £52.5m and increase its stake in the car manufacturer to 33%.

The consortium currently holds a 27.7% stake in Aston Martin, and has offered a 7% premium of 70 pence per share to take its shareholding to 33%, with the potential of increasing this proportion to 35% at a later date.

Under the City Code on Takeovers and Mergers, any acquisition of shares which sees the stakeholder carry 30% or more in voting rights means the investor would be required to make an offer for all of the remaining shares.

However, Yew Tree is looking to seek a waiver on this code to avoid making an official acquisition offer.

The move comes as the firm announced that it was looking to sell its minority investment in its Formula One team. It stated that these proposed transactions are expected to enhance the group’s liquidity by over £125m, "further strengthening the balance sheet".

Executive chairman at Aston Martin, Lawrence Stroll, said on behalf of the consortium: "I am pleased to clearly demonstrate my unwavering support and commitment to Aston Martin. Since 2020, my Yew Tree Consortium partners and I have invested around £600m into the company.

"This proposed investment further underscores my conviction in this extraordinary brand, and commitment to ensuring Aston Martin has the strongest possible platform for creating long-term value while reducing equity dilution via this premium subscription, which should greatly reassure shareholders, as I again increase my long-term ownership in the company."

The update comes after Aston Martin said that it was to cut 5% of its global workforce as its focused on "disciplined operational execution, continued business transformation and cost optimisation".

In the year to 31 December 2024, the luxury car manufacturer reported a 3% drop in revenue to £1.6bn, while its gross profit fell by 9% to £583.9m.

Investment director at AJ Bell, Russ Mould, commented: "There are some strange goings-on at Aston Martin. First, the Yew Tree Consortium is seeking permission to avoid having to make a mandatory takeover offer for the business. Second, Aston Martin is selling the family silver to raise additional cash to relieve pressure on the balance sheet.

"The Yew Tree Consortium has tabled a proposal to lift its stake to 33%, yet it is seeking an exemption from the takeover rule. Exemptions have been granted in the past, yet it feels like a takeover would be a better outcome as it would mean the car company would be free to pursue a turnaround strategy out of the public spotlight.

"Aston Martin’s performance as a listed company has been worse than a three-wheeled Reliant Robin on the motorway. The company wants to be in the fast lane, but it’s spent more time broken down on the hard shoulder."

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