Aston Martin confirms steps being taken towards capital increase; company Not for Sale

Friday 30 November 2012, 11:59 AM by

Amid speculations that the iconic car maker Aston Martin might be taken over by the Indian auto giant M&M, sources from the British automobile manufacturer have made it clear that the company is not for sale. It further clarified that the company stake sale is only to bring new capital into the company. The British sports car maker said that it is in advanced talks with investors over infusing of capital into the business.

Indian auto major Mahindra & Mahindra last week edged out its closest contender Italian investment firm, Investindustrial to make the largest offer in a bid to buy 40 per cent stakes in Aston Martin. This had made headlines across all major dailies in the country with speculations that the M&M may acquire the iconic British car maker.

Aston Martin spokeswoman talking about the matter told Reuters, "We are in talks for a capital increase, the company is not for sale and our existing shareholders, Investment Dar, are very much committed to Aston Martin." The spokeswoman confirmed that the company's third-quarter presentation, which was published late on 28th November, described the talks as being “at an advanced stage.”

Mahindra & Mahindra hopes to strike a deal for an initial 40 per cent stake in Aston Martin that could rise to 50 per cent, which would come for a total price of around $400 million (Rs. 22000 million approx).