Aston Martin Plans to Sell F1 Team Shares
Aston Martin’s decision to sell its shares in its namesake Formula 1 team appears significant at first glance.
This move may create the misleading impression that the manufacturer is exiting F1 team ownership, particularly since Aston Martin Lagonda is looking to sell its entire stake instead of partially divesting.
This approach differs from that of Daimler reducing its share in the Mercedes F1 team or Renault selling part of Alpine to U.S. investors.
However, the situation at Aston Martin’s F1 team is somewhat unique, as the company has never held a majority share. It has only maintained a minority investment since November 2023, presumably restructuring around the time when Arctos Partners acquired a minority stake. This current holding equates to a value around £74 million, likely under 10% of the team’s overall worth.
This effectively means that Aston Martin Lagonda operates mainly as a prominent branding partner—receiving just under £20 million last year—aligned with a specialized organization led by Lawrence Stroll, who also helms Aston Martin Lagonda.
Stroll is the common link between the two entities; when he acquired the assets of Force India, the F1 entry was branded as Racing Point. This branding still exists within a network of UK company registrations linked to “AMR GP.”
Stroll changed the F1 team to Aston Martin once he took over the car company. Although Aston Martin holds a minor stake and has influenced commercial marketing, it has not controlled the team or impacted car design or engine production. The company is aiming to capitalize on the market value of its shares and the future shares it can obtain as part of its ongoing struggle for growth.
Long-Term Commitment and Future Ownership
Aston Martin’s proposal outlines the intent to sell existing shares along with those issuable through secondary warrants, seeking to gain a premium above the combined book value of approximately £74 million. As of December 31, 2024, the book value of the shares stood at £50.9 million, and discussions have also been held to potentially expedite the exercise of these secondary warrants before 2031.
Despite these changes, the long-term sponsorship agreement with the F1 team remains unchanged and is set to last another five years from 2026 as long as both entities share common ownership. Stroll’s shareholding in Aston Martin Lagonda is expected to increase to 33% due to the sale.
Stroll reaffirmed Aston Martin’s commitment to its long-standing sponsorship and licensing agreement, which he asserted will ensure the Aston brand remains involved in F1 for decades. The destination of the shares, however, remains unconfirmed, with investment bank Raine Group engaged to identify potential buyers.
There is potential for Aramco to take up minority ownership, given its previous agreement allowing for a 10% stake, or alternatively, another minority investor may emerge, reminiscent of the U.S. investment organization that recently acquired a significant minority share.
In conclusion, the fundamental direction of the team and its ownership structure is unlikely to undergo significant changes. The synergy between Aston Martin’s automotive business and its F1 team represents a compelling commercial partnership that benefits both sides. The branding and collaboration will likely endure well into the future, retaining the identity of the Aston Martin F1 team.
Aston Martin’s Complete Statement
The recent news highlights Executive Chairman Lawrence Stroll’s steadfast commitment to Aston Martin and the Formula 1 team. A long-term contract has been established to ensure the Aston Martin name remains at the height of motorsport for years to come.
The proposed transaction will lead to Aston Martin Lagonda (AML) selling its stake in the Aston Martin Aramco Formula One Team (AMF1). Consequently, Mr. Stroll’s ownership in AML will increase to 33%, bolstering the company’s financial position by over £125 million.
Mr. Stroll has engaged the investment bank Raine Group to assist in locating a buyer for AML’s F1 team stake. Raine will collaborate closely with AMF1’s commercial chief, Jeff Slack, to attract a strategic investor capable of delivering long-term value.
Stroll emphasized that these initiatives solidify Aston Martin’s premier status in Formula 1, with the company reaffirming its long-term sponsorship and licensing agreement with AMF1 to ensure that the iconic Aston Martin brand persists in the F1 arena for many years ahead.
