Aston's bond holders are told talks regarding a deal are underway; reports suggest Mahindra & Mahindra is favourite to land £250m deal for 40 per cent of the company
Aston Martin has confirmed that it is in advanced talks with investors for an equity injection.
A document sent to bond holders in the firm today reported: "Aston Martin, with the support of its shareholders, confirms that discussions are at an advanced stage to secure a capital increase which will ensure it can deliver its medium and long-term growth plans."
Both Indian conglomerate Mahindra & Mahindra and Italian buyout firm Invest Industrial are reported to be vying to invest in Aston, with the former offering a significantly greater cash injection and the latter offering less financial support but a technical partnership with Mercedes and AMG.
Initial reports suggested that Invest Industrial were favourites to secure the £250m deal, but sources now suggest that Mahindra & Mahindra has moved ahead in negotiations and is the favoured partner. The winning bidder is expect to own 40% of the company and have 50% of the voting rights.
Financial analysts are reporting that the admission to bond holders that talks are underway signals that a deal is likely to be imminent, and could be concluded within a week.