Mercedes F1 boss Toto Wolff acquires shares in Aston Martin
- Published on 18 Apr 2020 12:29
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- By: Fergal Walsh
Team principal of the Mercedes Formula 1 team Toto Wolff has bought shares in the British sportscar manufacturer Aston Martin.
However, the deal will have no effect on his current position in the Mercedes F1 team, who has dominated F1 under Wolff in the turbo-hybrid era.
It is understood that Wolff's purchase is in the figure of £37million, equivalent to a 4.77%, however this will be thinned down to 0.95% following a pending rights issue.
Aston Martin will return to F1 as a works team in 2021, after Racing Point team owner Lawrence Stroll recently became the CEO of the company, securing its future with a deal exceeding £536million.
Wolff has been linked with a move to the Silverstone-based team in 2021, however he has since debunked the rumours.
MORE: Szafnauer sees no Aston Martin role for Wolff in 2021
His contract at Mercedes expires at the end of the 2020 season but it is believed that he is currently in talks with the team to further extend his stay.
A Mercedes spokesperson said: "Fully diluted following the pending rights issue, this investment will represent a 0.95% stake in the company.
"It is a financial investment and Toto's partnership and executive role with Mercedes are unaffected by the transaction."
Mercedes already has ties with Aston Martin, as Mercedes' parent company Daimler holds a 5% stake in the firm since 2013, and supplies engines for its road cars, making Daimler Aston Martin's largest supplier.
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Replies (15)
Login to replyPistonhead
Posts: 556
errr, wow (I think??). AML is a dog of an investment from an opening share price of GBP19.00 it has fallen, pretty much every week since the IPO and shares currently with GBP55p - it is touted as one of the worst ever flotations and but for Stroll's investment by now would have been insolvent. As it stands, AML have issued a statement that they have liquidity for 2020 and no further. They need to start selling a bunch of their new DBX, with a starting price of USD195k - and all this was before the true extent of coronavirus..... This is a strong statement that Stroll intends, and has the ability/desire, to support the venture in the medium to long term.... This aside.......... it sort of doesn't feel right with Wolf having an interest in both camps - as a director of a financial organisation, I am asked every board meeting whether I have/might have conflicting interests with other financial/non-financial services firms - as a uninformed observer, having supply contracts with AML appears to be a conflict of interest - I don't think this is right, especially if it is Toto that has the final say on those contracts etc - this is getting a bit like Torro Rosso and RBH - anti-competing gentlemen's agreements.....
mcbhargav
Posts: 1,332
Is AML now a sister company of Mercedes F1 ? or Toto switch imminent?
Snooky
Posts: 121
I think it may even be Wolf putting plans into motion in case Merc decide to pull out as a team, he has somewhere ready made to go
RogerF1
Posts: 501
I’m in the same mind set as Snooky, I somehow have doubts to the longevity of Merc’s on going longer term involvement in F1 given the immense investment cost and political force driving towards EV that parent Daimler is tied up to and the now massive loss of income with global sales on hold. Surely they will jump over to FE (solely?). Think back to how many ‘mainstream’ car makers have dipped in for a few years then cut and run. Seems odd TW having to forego his Williams involvement but ok to take (a small) stake in Aston’ - excepting his stake is in the ‘parent company’ not directly in the racing team per say. Overall the move pleases me to see AML setting up to hopefully prosper, the6 have a lot ‘going on’ behind the scenes.
calle.itw
Posts: 8,527
I mean, it's always nice to have a spare plan. And at any rate Wolff can afford these kinda shares with ease, so why not.
mcbhargav
Posts: 1,332
Perhaps he has received some indication from the parent company of Mercedes. News says, their North American performance is lackluster and hit hard by model 3 the most, and that’s before recession. I feel, it’s just about time for them to cut down extra curricular spending, till they find foothold again. AMG might stick to engine supply though to keep their engineering on the sharp end of the edge.
Snooky
Posts: 121
Think you’re right mcbhargav. What more do Merc have to prove at this stage? Engine supplier to McLaren like before seems to be the start of it. Keep their toes in the water so they can keep with the times and have a hand on the wheel as An engine supplier but not the huge investment like it is currently. Or could simply be just a sound investment on Wolfs part to plan for a retirement but I suspect this is not the case
calle.itw
Posts: 8,527
I kinda don't think so. Budget cap will probably ease any such blows for them, and it isn't exactly defeat device big a blow. And I also don't think Merc' is so shortterm as some would imply. If they were, they'd been out by now, methinks. I think they are greedy, and will probably remain for another while, until either a) they lose interest, be it for money or gains, or b) they go to focus on FE fulltime or any other series.
siggy74
Posts: 194
Smoke and Mirrors ;p
And from an investment opportunity 15% up already
otp.tools.investis(...)y.aspx?cid=2424&;newsid=1386491
siggy74
Posts: 194
Smoke and Mirrors ;p
Not a bad investment to be 15% up already..
And pretty much same amount as Daimler in AML. will be 1% ish on rights issue.
Will yew tree Sell the rest, best check Monday`s RNS ;p
mcbhargav
Posts: 1,332
Let me speculate further. Should Toto be appointed for the role of team principal ( of Aston Martin ), wonder what's the destination for Ottmar and Andy green? Mr.Green is a very good bang for buck officer, but not James Allison. Would Lewis get convinced by Toto to join the AML team in 2021 if Daimler pulls the plug?
siggy74
Posts: 194
Maybe a nice NED, job on the way ;p
siggy74
Posts: 194
The investment by ErsteAM is a financial investment for Toto Wolff, the Austrian motorsport and business investor, who has enjoyed record-breaking success as the Team Principal, managing partner and CEO of Mercedes-Benz Grand Prix Ltd. since 2013. The partnership and executive role with Mercedes are unaffected by the transaction.
NED role wouldn't be a conflict of interest
Norbert
Posts: 108
Getting into Aston Martin now when presumably they got a bit overextended is a smooth move. After the Vantage there is no reason why this company could not continue as a successful concern. Beautiful designs, fabulous interiors that are more upscale than Porsche/Audi/Lamborghini group. Well built cars with all that manufacturing and supplier chain sorted. For what it is, I’d much rather get into running that than say taking over Lotus. And the engines they’ve got are good. Are there better Grand Touring sports cars in the world that also have that level of cache? I don’t think so. And now bringing an F1 style power train in-house which they are basically experts on – it’s looking solid. It seems like the only problems were some kind of financial mismanagement (I haven’t looked into it). But with Lawrence Stroll and Toto Wolff teaming up as directors? Be afraid, be very afraid. I would not want to be playing defense against the two of them. The low share price is just icing on the cake.
siggy74
Posts: 194
50% More share buys than sells ;p
Share price now tanking down to sub 40....
looks like AML going private before Year end, one has to wonder what will be with Mr Wolf in the future ;p
Either way shorties are driving any value out in an organised way ;p