Aston backer is flooded with offers
Kuwait-based company receives offers for its stake in Aston Martin
Investment Dar, the Kuwait-based holding company that operates under Islamic law, has disclosed that it has been flooded with offers for its current stake in Aston Martin.
The group put up £240M for a 50% stake to help buy Aston Martin from Ford as part of a £479M bid fronted by Prodrive boss David Richards. Now, less than two months since the bidding process, it has been reportedly been offered £360M even before the completion of purchase.
"We are receiving bids daily," Investment Dar Executive Vice President Amr Abou El Seoud said. "We're getting bids at a 50 percent profit. The company will probably hold onto its stake for at least a year before selling a portion", Seoud added. "We have a plan and strategy that we would love to see implemented before thinking seriously about selling," although he declined to give any details about the plan. "We are not expected to exit but rather to diversify to seek value-added investors to share with us," he said.
Another report has a source quoted as saying the group will not sell until it has made a 100% profit. Meanwhile, Richards has insisted there are no plans for an early exit.
What worries me about these guys is that they have no idea about the motor industry. They are just there to make a profit. What happens if Aston Martin doesn't make as much money next year? They won't get their money back and will want to dump their share asap without any care to happens to the company or its employees.
I am afraid few companies are run by life-long enthusiasts these days. Our greatest hope is that whomever does buy their share has even deeper pockets and an eye for the long term.
also where were these offers when Aston first went on the market?
its looks like a bit of window dressing to further boost the image and value of the Aston brand.
Not a bunch of venture capitalists out to make a quick buck.
I realise the MG-Rover and TVR cases were different, but look at what happened to them, I'd hate to see AM going the same way in a few years time due to shoddy management and poor investment, especially as they are at the top of their game at the moment.
It is impossible for these firms to act in the same way a UK VC would operate. Account needs to be taken for the fact that they cannot simply buy-in on a venture without long-term goals for the benefit of the business. It governs the running of any company to the proportions of investment inlaid.
It's all very complicated, but itmeans a more moral approach (having said that it seems to be that the getting around of these obstacles is the current obsession).
Eitherway AM shouldn't suffer too much, not in the short-term at least....
That's the absolute opposite to what I was told during a factory tour last April. In fact Aston Martin was the only part of the Ford empire that was making a profit.
Kind of has a TVR ring to it this story.
God forbid if this Marque goes the same way. Just wish Prodrive could have afforded to buy the company without these investors, who appear to simply want to use the Marque to make a quick buck
David Richards bought the company, not Prodrive.
As for concerns about ownership, Ford only bought in the first place to turn a profit. And only sold it because it was the only thing they could sell that might net them anything worthwhile. Welcome to the shiny world of business (and don't go thinking David Richards has any romantic notions either - if it doesn't work out as intended with whatever sub 5-yr plan they have, watch them bail).
Not convinced about the moral approach of said VC's either. ALL these places do what they do to make cash. End of.
I just hope that in the mean time they produce some cracking cars. It's the only way they'll survive. And at present, I'm not convinced that the likes of the DBS and Rapide will be enough. And I certainly don't believe an updated branding strategy (CAR Magazine this month) should be top of the list of priorities (that whole interview in CAR was a bit of a worry to me).
Kind of has a TVR ring to it this story.
God forbid if this Marque goes the same way. Just wish Prodrive could have afforded to buy the company without these investors, who appear to simply want to use the Marque to make a quick buck
David Richards bought the company, not Prodrive.
Sorry, my mistake, should have said DR Mind you, I'm sure he could have got some big money behind the Prodrive name to take full control, rather than what appears to be a group of far east investors only interested in making a quick buck!!!!
As for the real decision makers, my view is that one has to look closer to Newport Pagnell and Kuwait City.
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