Shares of Saudi Arabia's Public Investment Fund (PIF) and Chinese billionaire Li Shufu in Aston Martin plummet following financial investment.

Shares of Saudi Arabia's Public Investment Fund (PIF) and Chinese billionaire Li Shufu in Aston Martin plummet following financial investment.

A Shakeup in Aston Martin's Shares

Aston Martin's stock has witnessed a slide, causing a decline in the value of the Public Investment Fund (PIF) and Shufu Li's stakes. This comes after the Yew Tree Consortium, led by chairman Lawrence Stroll, placed 75 million additional shares in the London-based company.

These added shares have impacted the fortunes of both PIF and Li, who still retain the same number of shares. The PIF, now Aston Martin's second-largest shareholder, first obtained a 16.7% stake in the carmaker in July 2022. Back then, the deal was valued at £78m.

Since the announcement, Aston Martin's share price soared by 20%, reaching 170p. However, the company's shares are now trading around 79p, a significant drop from the 141p a year ago and 107p at the start of 2025.

In a recently filed document with the London Stock Exchange, the PIF's ownership in Aston Martin dropped from 18% to 16.6%. The PIF had boosted its stake in the brand to over 20% in November 2023. Chinese billionaire Shufu Li, who is the founder and chairman of Volvo owner Geely, has also seen a dip in his Aston Martin ownership, from 15.2% to 14%. Li became a shareholder in the company since September 2022.

Lawrence Stroll's Aston Martin Takeover Bid

Amid a potential trade deal between the UK and the US, Aston Martin's shares have surged. The company had halted US car exports at the end of April due to tariff uncertainty, but Trump announced a marginal scale down, reducing the automaker levies to 10% on 100,000 cars.

In late March, Aston Martin faced a takeover bid from Canadian billionaire Lawrence Stroll, who aimed to boost his stake in the car manufacturer by £52.5m by acquiring 75 million shares. However, according to the UK Takeover Code, any person acquiring over 30% of a company's shares must make an offer to buy out the remaining shareholders, potentially leading Stroll to take over the last remaining British car manufacturer.

Earlier in the month, reports suggested that Aston Martin was planning to pay its top executives more than their peers in other FTSE 250 companies to combat talent shortages it faced due to uncompetitive reward packages under its most recent remuneration policy. The luxury carmaker proposed to increase the bonus opportunities for its chief executive and chief financial officer from 200% to 250% of their salaries.

Sources:1. Financial Times2. The Telegraph3. City AM4. Investopedia

1. In light of Lawrence Stroll's ambition to increase his stake in Aston Martin, the financial markets are closely watching movements in the transport sector, particularly in the stock market, as his takeover bid could potentially reshape the car manufacturing industry.
2. As the PIF and Lawrence Stroll's stakes in Aston Martin fluctuate, the transportation and finance sectors are witnessing increased investments as prominent figures maneuver their positions in the markets, potentially impacting the company's future growth and performance.

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