TIDMAML
RNS Number : 8154D
Aston Martin Lagonda Glob.Hldgs PLC
26 June 2023
26 June 2023
Aston Martin Lagonda Global Holdings plc
Aston Martin Lagonda and Lucid Group, Inc. to enter in to
strategic supply agreement to create industry-leading ultra-luxury
high performance electric vehicles
-- Agreement to include access to Lucid's industry-leading
technologies and long-term relationship whereby Lucid will supply
Aston Martin with select powertrain components for initial and
certain future BEV models
-- Under the terms of the proposed agreement, Aston Martin would
issue 28,352,273 new ordinary shares to Lucid and make phased cash
payments to Lucid, with the aggregate value of shares issued and
cash payments totalling approximately $232m (GBP182m)
-- Lucid Group would become a c. 3.7% shareholder in Aston Martin Lagonda Global Holdings plc
-- Agreement subject to shareholder approval, with irrevocable
commitments to vote in favour received from Yew Tree Consortium,
Mercedes-Benz and Geely representing 48.1% of issued share capital.
As PIF, controlling shareholder of Lucid, cannot vote on the
resolution approving entry into the agreement with Lucid, 58.5% of
the votes in respect of that resolution are in fact secured
Aston Martin Lagonda Global Holdings plc ("Aston Martin", "Aston
Martin Lagonda" or the "Company") and Lucid Group, Inc. ("Lucid")
have today announced their intention to enter into a unique and
innovative supply arrangement between their respective groups,
which will support Aston Martin's high-performance electrification
strategy and long-term growth.
Under the terms of an initial Implementation Agreement entered
into today between Aston Martin and Lucid, subject to receiving
shareholder approval and the satisfaction of certain regulatory and
other conditions, the parties have agreed to enter into integration
and supply agreements that would provide Aston Martin with access
to Lucid's industry-leading technology for its BEVs, including
electric powertrains and battery systems.
The proposed alignment of Aston Martin's iconic brand,
ultra-luxury craftsmanship and high performance in-house
engineering excellence, with Lucid's advanced technologies and
expertise in luxury electric vehicles, would create an unrivalled
combination with the capabilities to re-define the customer
experience for future Aston Martin BEV products.
The supply agreement would also complement the bespoke
development of a single BEV platform by Aston Martin that will be
utilised across its future electrified product portfolio, and
support the Company's target to launch its first BEV in 2025.
In consideration for receiving access to Lucid's
industry-leading technologies, Aston Martin has, subject to
shareholder approval and the satisfaction of certain regulatory and
other conditions agreed to:
-- issue 28,352,273 new ordinary shares in its share capital to
Lucid (the "Consideration Shares"), equivalent to approximately
$100m[1] (GBP79m) in value, which will see Lucid become a c.3.7%
shareholder in Aston Martin (by reference to Aston Martin's current
issued share capital). Subject to certain customary exceptions,
Lucid has agreed not to dispose of the Consideration Shares for a
period of 365 days from the date of their allotment
-- make certain phased cash payments to Lucid in the aggregate
amount of $132m (GBP104m), with (i) an initial amount of $33m
(GBP26m) payable on the date of admission of the Consideration
Shares to listing on the premium listing segment of the Official
List of the Financial Conduct Authority and to trading on the Main
Market of London Stock Exchange plc; and (ii) subsequent amounts
payable in multiple stages on certain future dates in 2025 and
2026
-- under the terms that will govern the supply arrangements,
commit to an effective minimum spend with Lucid on powertrain
components of $225m (GBP177m)
-- under the terms that will govern the integration work carried
out between the parties to integrate Lucid technology into Aston
Martin BEVs, pay Lucid an additional $10m (GBP8m) integration
fee
The Implementation Agreement includes certain exclusivity
provisions for the benefit of Aston Martin, as well as customary
warranties and termination rights.
As the agreement entails a related party transaction the Company
will separately publish a shareholder circular (the "Circular") in
due course, which will contain notice of the General Meeting of the
Company (the "General Meeting") required in connection with the
strategic supply agreement for the Company to seek approval from
its shareholders. Subject to receipt of the necessary shareholder
approvals, the Consideration Shares will be issued to Lucid
following the General Meeting and satisfaction of certain
regulatory and other conditions.
In connection with the General Meeting:
-- Yew Tree Overseas Limited, on its own behalf and in its
capacity as Representative Shareholder on behalf of the members of
the Yew Tree Consortium (being Yew Tree Overseas Limited, Saint
James Invest SA, J.C.B. Research, RRRR Investments LLC, John Idol,
Francinvest Holding Corporation, ErsteAM Ltd and Omega Funds I
Limited) which owns approximately 21.1% of the issued share capital
of the Company as at the date of this announcement, has irrevocably
agreed to vote in favour of the strategic supply agreement at the
General Meeting
-- Geely International (Hong Kong) Limited and Geely Group
Limited (together, "Geely") which together own approximately 17.6%
of the issued share capital of the Company as at the date of this
announcement, have irrevocably agreed to vote in favour of the
strategic supply agreement at the General Meeting
-- Mercedes-Benz AG ("MBAG") which owns approximately 9.4% of
the issued share capital of the Company as at the date of this
announcement, has irrevocably agreed to vote in favour of the
strategic supply agreement at the General Meeting. The Company has
also today released a separate announcement of certain changes that
it and MBAG have agreed to make to the Strategic Cooperation
Agreement that has been in place between them since October
2020
Lawrence Stroll, Executive Chairman of Aston Martin, said : "The
proposed supply agreement with Lucid is a game changer for the
future EV-led growth of Aston Martin. Based on our strategy and
requirements, we selected Lucid, gaining access to the industry's
highest performance and most innovative technologies for our future
BEV products.
"We will not only leverage the significant investments Lucid has
made to develop its world-class technologies, but will also further
enhance and differentiate the drive experience through the work
Roberto and his teams are already developing, aligned with our
ultra-luxury, high-performance strategy.
"Along with Mercedes-Benz, we now have two world-class suppliers
to support the internal development and investments we are making
to deliver our electrification strategy. With the recently
announced long-term partnership with Geely, we will also gain the
opportunity to access their range of technologies and components,
as well as their deep expertise of the key strategic market of
China.
"Overall, today's announcement is a further significant step
towards delivering our ambition for Aston Martin."
Roberto Fedeli, Chief Technology Officer of Aston Martin, said :
"The proposed agreement with Lucid forms a significant pillar of
our electrification strategy, providing Aston Martin with access to
the industry's leading powertrain and battery systems technology.
Combined with our internal development, this will allow us to
create a single bespoke BEV platform suitable for all future Aston
Martin products, all the way from hypercars to sports cars and
SUVs.
"In addition, we will continue to expand our in-house powertrain
capabilities, allowing us to provide the thrilling performance and
intense driving experience we know that our customers love and
expect from Aston Martin."
Peter Rawlinson, CEO of Lucid Group, said : "This partnership
will represent a landmark collaboration between Aston Martin, a
storied marque with a rich history, including winning at Le Mans
and its current successes in F1, and the very best of Silicon
Valley innovation and technology from Lucid.
"In line with its strategy, Aston Martin selected Lucid,
recognizing the profound benefits of adopting its world-leading
electric drivetrain technology, exemplified by the breakthrough
520-mile EPA-estimated range achieved by the Lucid Air Dream
Edition."
Racing. Green.
Today's announcement marks the latest development in Aston
Martin's ongoing work to develop alternatives to the internal
combustion engine, as part of its broader Racing. Green.
sustainability strategy. In line with its electrification roadmap,
Aston Martin's first plug-in hybrid - the mid-engine supercar
Valhalla - will commence delivery in 2024. By 2026, all new Aston
Martin product lines will have an electrified powertrain option,
with a target for its core portfolio of Sports / GT and SUV models
to be fully electrified by 2030.
Related party transaction
Lucid is majority-owned and controlled by the Public Investment
Fund ("PIF"), a substantial shareholder of the Company for the
purposes of the Listing Rules as a result of being entitled to
exercise, or to control the exercise of, over 10 per cent. of the
votes able to be cast at general meetings of the Company. Lucid is
therefore considered to be a related party for the purposes of the
Listing Rules. The Listing Rules require that a related party
transaction of a listed company above a certain threshold must be
approved by its shareholders, other than the related party and its
associates, unless certain exemptions apply. The terms of the
related party transaction agreed between the Company and Lucid will
require such shareholder approval. PIF (as an associate of Lucid)
will not be permitted to vote its shares in respect of the related
party transaction resolution at the General Meeting. Further
details of the related party transaction and the corresponding
resolution will be set out in the Circular.
Regulatory Disclosures
This announcement includes inside information as defined in
Article 7 of the UK Market Abuse Regulation No. 596/2014 as it
forms part of domestic law by virtue of the European Union
(Withdrawal) Act 2018 and is being released on behalf of the
Company by Liz Miles, Company Secretary.
Enquiries
Investors and Analysts
Sherief Bakr Director of Investor Relations +44 (0)7789 177547
sherief.bakr@astonmartin.com
Holly Grainger Deputy Head, Investor Relations +44 (0)7442 989551
holly.grainger@astonmartin.com
Media
Kevin Watters Director of Communications +44 (0)7764 386683
kevin.watters@astonmartin.com
Paul Garbett Head of Corporate and Brand +44 (0)7501 380799
Communications paul.garbett@astonmartin.com
Teneo
Harry Cameron +44 (0)20 7353 4200
[1] Calculated by reference to the 30-day volume-weighted
average price of Aston Martin ordinary shares, and the USD/GBP
exchange rate as of 23 June 2023
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
AGRSEAEFIEDSEDM
(END) Dow Jones Newswires
June 26, 2023 02:00 ET (06:00 GMT)
Aston Martin Lagonda Glo... (LSE:AML)
Historical Stock Chart
From Jun 2024 to Jul 2024
Aston Martin Lagonda Glo... (LSE:AML)
Historical Stock Chart
From Jul 2023 to Jul 2024