The results compounded the sense of malaise with the company citing lower vehicle pricing and higher costs of expansion. Since the day before its July 24 warning, its shares have more than halved.
The developments have put Aston Martin’s market valuation of 1 billion pounds ($1.2 billion) close to converging with its debt level of 723 million pounds ($883.8 million). To fix its issues, the company should consider a cut to its midterm outlook or increase funding with a rights issue of as much as 500 million pounds ($611 million), Bank of America Merrill Lynch said Tuesday.
The challenges may also see the company be approached by a strategic buyer, such as Investindustrial, one of Aston Martin’s largest shareholders, the bank said. Daimler AG also holds a small stake.
“If we require some additional financing from sources with which we’re familiar, particularly in the debt market to maintain that capacity, then that’s what we’ll go out and do,” CFO Mark Wilson said…