The Public Investment Fund (PIF) is a very well-known company, especially in the football world, as this company owns the English club Newcastle United and the controversial organization LIV Golf. This is a huge Saudi Arabian company that owns the already gigantic company Aramco as the main sponsor of Aston Martin F1.
The Public Investmend Fund, or as we write perexa – PIF for short, is to join the Aston Martin organization.
However, the firm’s diverse range of interests also includes stakes in a number of other companies, such as Boeing, Disney, CitiCorp, Facebook, BP, Marriott, Uber, Tesla, Nintendo and Total.
At the same time, the company recently announced plans for new equity financing and strategic investments from the Saudi Public Investment Fund. Already in July of last year, PIF became the main investor in the McLaren group as part of the organization’s refinancing.
And now PFI is to enter Aston Martin Lagonda Holdings, which has also been hit by falling share prices, debt and other financial “pressure” over the past year.
The new partnership, with additional funding from existing investors including Mercedes-Benz, would raise Aston Martin to a total of £653m. According to information from the Motorsport server, PIF will thus become the second largest shareholder with a 17% stake in the company.
Stroll’s Yew Tree consortium will own 18.3% and Mercedes-Benz will retain 9.7%, both having already reduced their stakes anyway.
Lawrence Stroll, owner of the Aston Martin Cognizant F1 team, has made it clear that this investment can cause a major upheaval. And not only economic, but also performance.
“This is a game-changing event for Aston Martin. It supports the implementation of our strategic plans and accelerates our long-term growth potential.” said Stroll, whose words were quoted by the website Motorsport.
Whether Stroll’s words are confirmed, we will have to wait for some time. However, the Aston Martin team has never suffered significantly financially and yet this stable is one of the worst in terms of performance in Formula 1.
Resources: Aston Martin, Motorsport
