Aston Martin looks to Gulf to raise $1.9bn

FUND RAISING: Aston Martin plans to sell shares in new Middle Eastern company. (Supplied)

British sportscar maker Aston Martin, which is controlled by Kuwait's Investment Dar, plans to raise $1.9 billion by selling shares in a new Middle Eastern company, which might be later listed.

Chief Executive Ulrich Bez told newswire Reuters that Aston Martin would own a majority stake in the new company, while the rest of the shares would be sold to investors in the Gulf in a private placement worth 500 million dinars ($1.9 billion).

The new company, which will help revamp Aston's operations in the fast-growing Gulf, could be listed after three years depending on market regulations, added Amr Abou Al-Seoud, executive vice-president of Islamic investment firm Investment Dar.

"It's a... company which will be listed in one or more of the Gulf stock exchanges," Al-Seoud told Reuters, declining to be more specific.

Bez said the new company was part of efforts to expand operations in the Gulf, where economies are benefitting from high oil prices, while markets such as the United States and Europe are being hit by the global financial crisis.

"We want to have proper dealerships in all Gulf countries," he said, adding that the new company will be launched within weeks.

The car maker wants to boost its annual sales in the Gulf region from a current level of about 300 cars, he said.

In total, Aston Martin plans to have around 150 dealers by the end of the next year, up from 125 spread across 32 countries including Bahrain, Kuwait, the United Arab Emirates, Qatar and Saudi Arabia.

But overall production would fall this year to between 6,500 and 7,000 vehicles, including its V8 Vantage and DB9 grand tourer which sells for upwards of 114,000 pounds ($200,300), down from 7,300 in 2007.

"We are targeting growth and expansion into new markets, so there will be deliberate reduction in some markets to compensate for growth in new emerging markets," said Bez.

Aston Martin, famously associated with fictional British secret agent James Bond, was bought from Ford Motor Co last year by a consortium including Formula 1 specialist David Richards and Kuwait's Investment Dar for 479 million pounds. (Reuters)

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