RE: Aston sells stake.

Author
Discussion

Bash Brannigan

211 posts

189 months

Friday 7th December 2012
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I really hope that at some point in the near future we get a mental tech billionaire who has money to burn and likes British 'stuff' and cars...anyone want to appeal to Elon Musk? I'm sure that he'll run out of steam with his electric cars soon and Aston and Lotus are both on the rocks.

Roma101

846 posts

149 months

Friday 7th December 2012
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I think II have bought shares from ID (i.e. they are not new shares). It is also not entirely clear whether the £150m is what II paid for the shares or whether it is an "investment". The piece I read described the £150m as an "investment". Is this just another way of them saying II "bought shares for..." Also, again from the piece I read, AM's "enterprise value" now stands at £780m, which is a different number to what you get if you simply price 100% of the shares on the 150m/37.5% equation. Any corporate people out there who can help?

DonkeyApple

55,977 posts

171 months

Friday 7th December 2012
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I can't wait to see what the new Lagonda SUV and saloon will look like now they've raised the money to pay for their development.

jakeb

281 posts

196 months

Friday 7th December 2012
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I believe the company issued new share capital which would suggest that Dar didnt want to put any more money in without another investor on board.

A Scotsman

1,000 posts

201 months

Friday 7th December 2012
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I suppose it was too much to expect the glorious UK financial sector to buy into Aston Martin. Useless shower of shi*tes.

DonkeyApple

55,977 posts

171 months

Friday 7th December 2012
quotequote all
A Scotsman said:
I suppose it was too much to expect the glorious UK financial sector to buy into Aston Martin. Useless shower of shi*tes.
Not sure you've thought through the PR aspect of that. smile

robinessex

11,088 posts

183 months

Friday 7th December 2012
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Sorry, I get really pissed off whenever another (original) UK car manufacturer passes into foreign hands. How come foreign companies can find the funds and justification, yet in the UK there are none?

anonymous-user

56 months

Friday 7th December 2012
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"Hi, we hear AML are for sale?" "Oh no, not for sale, no way"





"No, still not for sale"









"Absolutely not for sale, no need"













"ok, perhaps we might consider a sale if the time was right"














"no, we are not going to sell any part of the brand"












"It's quite clear, we are not for sale"















"ooh, 150million, that'll do nicely. SOLD!!"







;-)









mikeveal

4,606 posts

252 months

Friday 7th December 2012
quotequote all
That's essentially 1/3 of eff all.
So Aston are valued at 400 million.

http://raycee1234.blogspot.com/2011/02/sales-aston...

Looks like they sell 4500 cars a year at £90K to £190K each (ignoring the Cygnet). Let's average that at £140K, that's an annual turn over of £630 million. OK, this is a really quick and dirty figure, the sales figures are rough and I've no idea how their sales are spread across their model range. I only spent 2 minutes of googling to see what their annual sales are and 2 minutes to determine the cheapest / dearest models.


Either this stock sale was ridiculuously underpriced and needs to be investigated (in a game of spot the back hander) or the company is in serious trouble and isn't even close to profitable.

Or I suppose a bit of both.


anonymous-user

56 months

Friday 7th December 2012
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r11co said:
J B L said:
It wasn't ready.
That tells you everything you need to know right there - not enough money/wherewithal get on the massive marketing bandwagon that is essential to the brand. Even a visually accurate mock-up would have sufficed. The timetable for the film was known since before the MGM sale and even just getting the exterior signed off and bolted to a DBS or even a Ford Explorer chassis would have done the job (worked for Ford and the Mondeo - the car used in Casino Royal had a 'pre-production' interior ie. not much trim apart from what showed on camera because the production tooling hadn't been made yet).

Edited by r11co on Friday 7th December 14:02
Or even use a DBS again. It would be better than nothing.

will261058

1,115 posts

194 months

Friday 7th December 2012
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£150m for just over a third of the company means the value of AM is around the £400m mark. This seems a bit low to me.

anonymous-user

56 months

Friday 7th December 2012
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Simple facts suggest that AML probably need an entirely new model in order to regain serious profitability (like when they brought out the AM305 Vantage for example). This is going to easily hoover up a tidy half billon or so in development costs. Hence, without that car, the entire companies worth is depressed as anyone buying into the company must spend ~£500M before they can make any significant profit.


£150M will probably get them a nice new 6cyl turbo for the current Vantage, or a fairly serious freshen up of that car, and that's about all.......

Diesel130

1,549 posts

214 months

Friday 7th December 2012
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Bash Brannigan said:
I really hope that at some point in the near future we get a mental tech billionaire who has money to burn and likes British 'stuff' and cars...anyone want to appeal to Elon Musk? I'm sure that he'll run out of steam with his electric cars soon and Aston and Lotus are both on the rocks.
Or a rich Russian banker... surely Nikolay Smolensky's got some time on his hands nowadays?

blackchrome917

69 posts

150 months

Friday 7th December 2012
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Max_Torque said:
"ooh, 150million, that'll do nicely. SOLD!!"
Everything's for sale ....



.... for the right price!

wst

3,494 posts

163 months

Friday 7th December 2012
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So hypothetically I could own 1/3rd of Aston Martin for the same amount of money it takes to buy a car from them...

Does 1/3rd ownership of a company entitle me to a company car? I'll take an Aston.

peter450

1,650 posts

235 months

Friday 7th December 2012
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The italian bid had access to AMG bits as part of the deal did it not?, a solid start would be to drop the AMG V8 into the Vantage and Twin Turbo V12 into the V12 cars


AV12

5,319 posts

210 months

Friday 7th December 2012
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That makes much sense. The Merc engines are sublime.

I would recommend the V8TT for the rapide and possibly make it more luxury orientated (and sort the rear legroom)

All IMHO

danny84

86 posts

180 months

Friday 7th December 2012
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Working with our shareholders.Translated"Making cars we are forced to make in order to get a substantial return on their investment"

DonkeyApple

55,977 posts

171 months

Friday 7th December 2012
quotequote all
robinessex said:
Sorry, I get really pissed off whenever another (original) UK car manufacturer passes into foreign hands. How come foreign companies can find the funds and justification, yet in the UK there are none?
In very crude terms, overseas investors are buying heritage and class whereas our companies invest abroad purely for returns.

Why buy into a struggling firm which will need more money when you can buy a factory abroad which needs nothing but will give good solid returns.

We own more assets overseas than others own UK assets.

wtdoom

3,742 posts

210 months

Friday 7th December 2012
quotequote all
Group buy anyone ?