Billionaire Lawrence Stroll is reportedly in initial negotiations to sell yet another minority stake in his Formula 1 team, Aston Martin. The decision reflects growing interest in the category, according to Bloomberg News.
Stroll, who owns the team separately from his stake in luxury car maker Aston Martin Lagonda, is reportedly willing to trade up to 25% of the F1 team. The Canadian businessman hopes to surpass the US$1.3 billion valuation reached last November, when he sold a minority stake to the American private equity firm, Arctos Partners.
“Eventually, and more recently after the investment from Arctos Partners, the team is contacted by interested parties,” said an Aston Martin F1 spokesperson in an official statement. The statement highlights that any conversation is confidential and there is no official announcement at this time.
It would be another chapter in the wave of negotiations and growing valuations in F1. The category has gained immense popularity in the United States, thanks in large part to the success of Netflix’s ‘Drive to Survive’ documentary series.
The interest in the F1 team contrasts with the situation of publicly listed Aston Martin, which Stroll, a former textile industry magnate, acquired in 2020. The company’s shares have fallen by around 30% since the beginning of the year and have accumulated a depreciation of 80% since acquisition. For Aston Martin Lagonda, Stroll had to resort to successive capital contributions, including from the Saudi Arabian sovereign wealth fund.
After Bloomberg’s news about the possible increase in investors in Aston Martin F1, Aston Martin Lagonda shares rose 7.3%, but soon retreated partially.
At the beginning of the month, two-time champion Fernando Alonso renewed his contract with the team until the end of 2026. This is the season in which Honda will take over manufacturing of the Aston Martin engine, coinciding with the entry into force of new regulations in the category. The expectation is that these changes will shake up F1, currently dominated by Red Bull Racing and Max Verstappen. The other Aston Martin driver is Lance Stroll, Lawrence’s son.
The F1 team is officially called the Aston Martin Aramco Formula One Team, due to a main sponsorship deal with the Saudi state oil giant, valid until 2028.
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