Stroll considers taking Aston Martin private

Lawrence Stroll has suggested he might take Aston Martin private in the future, describing the luxury carmaker's current stock market valuation of around £650 million as "severely undervalued" and "a joke."

The executive chairman's comments come as he prepares to significantly increase his investment in the iconic British marque.

Expanding his financial commitment

Stroll's Yew Tree Consortium is set to invest approximately £51.5 million into Aston Martin, increasing its ownership stake from 27.7% to around one-third of the company.

This represents a substantial expansion of his commitment since his initial £182 million investment in 2021, which gave him a 16.7% stake.

When questioned about potentially taking the company private, Stroll left the possibility open.

"Could it be something for the future? Potentially, yes. Never say never," he told Bloomberg.

"Is it on my radar screen to do in the next fortnight? No, but never say never."

Racing team financial restructuring

Despite this significant investment in the road car business, Aston Martin plans to sell a minority stake in its Formula 1 team for at least £74 million.

This move doesn't signal any reduction in commitment to racing success.

Stroll appears confident in the team's ability to attract valuable partners.

"Happily with the incoming demand, we could be very picky on who to sell this percentage to," he confirmed.

The racing operation has already demonstrated its investment appeal.

Sports-focused private equity firm Arctos Partners acquired a minority stake in 2023, valuing the team at approximately £1.8 billion.

The Adrian Newey factor

Perhaps most significant for the team's competitive prospects is the recruitment of Adrian Newey, widely regarded as Formula 1's preeminent car designer.

After 19 years at Red Bull, where he masterminded their dominant 2023 campaign with 21 wins from 22 races, Newey has chosen to join Aston Martin.

His decision represents a major vote of confidence in the team's future.

Stroll has invested heavily in infrastructure to support Newey's work, including a state-of-the-art wind tunnel and the AMR Technology Centre which opened in July 2023.

Newey joins other high-profile technical recruits including Enrico Cardile from Ferrari, who will serve as Chief Technical Officer from 2025, and Andy Cowell, Mercedes' former engine boss.

This assembly of talent signals serious championship ambitions.

Long-term vision

Since rescuing Aston Martin in 2020, Stroll has invested more than £600 million in the company, which had been struggling with debt and low sales.

His commitment appears driven more by passion than profit, having made his fortune in fashion with brands like Ralph Lauren and Tommy Hilfiger.

Recent financial challenges led Aston Martin to cut 170 jobs after posting losses in Q4 of last year. However, this new investment aims to strengthen the company's financial position.

CEO Adrian Hallmark welcomed the investment:

"This renewed backing from Lawrence and his Yew Tree Consortium associates highlights their substantial confidence in our team and the Company's future. "

"By fortifying the balance sheet, this investment grants us additional flexibility to bolster our future product development and business transformation efforts."

For Formula 1 fans, these developments suggest Aston Martin's trajectory continues upward.

With Newey's expertise, Stroll's financial backing, and an impressive technical team, the Silverstone-based outfit appears increasingly positioned to challenge F1's established powers.