(Bloomberg) -- Aston Martin Lagonda Global Holdings Plc shares jumped after Executive Chairman Lawrence Stroll’s Yew Tree Consortium agreed to boost its stake in the carmaker to 26.2%.
Certain members of Yew Tree are buying an additional 26 million shares in the British luxury carmaker, according to a statement. Aston Martin shares rose more than 11% in early trading, the biggest gain since June.
Aston is the midst of a turnaround effort since Stroll in 2020 rescued it. The company, which has required multiple cash injections, reported second-quarter earnings that beat analyst expectations but left its full-year guidance unchanged.
Yew Tree’s investment could be seen as a “show of confidence” in the carmaker’s outlook, Oddo BHF analyst Anthony Dick said. It also confirms “that Aston Martin benefits from robust shareholder support to accompany its product-led expansion over the next couple of years.”
Yew Tree sold some of its stake to Chinese conglomerate Geely Automobile Holdings Ltd. earlier this year, then participated in a capital raising this summer.
--With assistance from Isolde MacDonogh and Siddharth Philip.
(Updates with analyst comment in fourth paragraph.)
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