Tweet
Aston Martin’s controlling shareholder, Investment Dar Co., has approached potential buyers for the maker of luxury sports cars featured in James Bond movies, said five people with knowledge of the matter.
The Kuwaiti company, which owns 64 percent of Gaydon, U.K.- based Aston Martin, has hired Rothschild to advise on the sale, said one of the people, who asked not to be identified because the talks are private. Mahindra & Mahindra Ltd. (MM), the Indian automaker, is among potential suitors Investment Dar has approached in recent few months, two of the people said.
A sale has proven difficult because investors haven’t been willing to match the price the Kuwaiti owner paid five years ago, said two of the people. Investment Dar has sought about $800 million for its stake, one person said.
For Kuwait’s Investment Dar, part of the group that bought Aston Martin for 503 million pounds ($805 million) in 2007, the proceeds would help the company pay off debt. A new backer for Aston Martin may help the maker of the 1.2-million-pound One-77 to develop cars that can challenge Volkswagen AG (VOW)’s Bentley and Fiat SpA (F)’s Ferrari.
“I don’t think you can truly compete without having the capabilities of a large car company behind you,” said John Wolkonowicz, an independent auto analyst. “There are very few examples of sustained success without it.”
A representative at Investment Dar who asked not to be named denied the company is seeking to sell Aston Martin.
Janette Green, director of brand communications at Aston Martin, said Investment Dar isn’t considering a sale. Requests for comment to Chairman David Richards were referred back to Green. Roma Balwani, a Mahindra spokeswoman in Mumbai, declined to comment on speculation.
Toyota Evaluation
Toyota Motor Corp., Asia’s largest carmaker, hired an auditor to conduct a one-week study on buying a stake in Aston Martin, according to a person familiar with the matter. The analysis, which was preliminary and carried out less than two months ago, hasn’t advanced to a full-blown evaluation, the person said. Shino Yamada, a Tokyo-based spokeswoman at Toyota (7203), declined to comment.
Investment Dar has reason to sell. The company agreed in February last year to reorganize 1.37 billion dinars ($4.9 billion) of debt after missing payment on an Islamic bond in May 2009. The restructuring is being implemented under Kuwait’s Financial Stability Law, enacted by the government in April 2009 to bolster financial institutions hurt by the credit crisis.
(...)
The Kuwaiti company, which owns 64 percent of Gaydon, U.K.- based Aston Martin, has hired Rothschild to advise on the sale, said one of the people, who asked not to be identified because the talks are private. Mahindra & Mahindra Ltd. (MM), the Indian automaker, is among potential suitors Investment Dar has approached in recent few months, two of the people said.
A sale has proven difficult because investors haven’t been willing to match the price the Kuwaiti owner paid five years ago, said two of the people. Investment Dar has sought about $800 million for its stake, one person said.
For Kuwait’s Investment Dar, part of the group that bought Aston Martin for 503 million pounds ($805 million) in 2007, the proceeds would help the company pay off debt. A new backer for Aston Martin may help the maker of the 1.2-million-pound One-77 to develop cars that can challenge Volkswagen AG (VOW)’s Bentley and Fiat SpA (F)’s Ferrari.
“I don’t think you can truly compete without having the capabilities of a large car company behind you,” said John Wolkonowicz, an independent auto analyst. “There are very few examples of sustained success without it.”
A representative at Investment Dar who asked not to be named denied the company is seeking to sell Aston Martin.
Janette Green, director of brand communications at Aston Martin, said Investment Dar isn’t considering a sale. Requests for comment to Chairman David Richards were referred back to Green. Roma Balwani, a Mahindra spokeswoman in Mumbai, declined to comment on speculation.
Toyota Evaluation
Toyota Motor Corp., Asia’s largest carmaker, hired an auditor to conduct a one-week study on buying a stake in Aston Martin, according to a person familiar with the matter. The analysis, which was preliminary and carried out less than two months ago, hasn’t advanced to a full-blown evaluation, the person said. Shino Yamada, a Tokyo-based spokeswoman at Toyota (7203), declined to comment.
Investment Dar has reason to sell. The company agreed in February last year to reorganize 1.37 billion dinars ($4.9 billion) of debt after missing payment on an Islamic bond in May 2009. The restructuring is being implemented under Kuwait’s Financial Stability Law, enacted by the government in April 2009 to bolster financial institutions hurt by the credit crisis.
(...)
Comentar