ASTON MARTIN

Aston Martin gets massive capital injection from Chinese auto giant Geely

Aston Martin shares rose nearly 25 percent on Thursday after the manufacturer announced a £234m investment from Chinese company Geely.

Geely will thus double its stake, becoming Aston Martin's third largest shareholder.

This investment paves the way for Aston Martin to secure its long-term future and reduce net debt, which stood at £868.1m at the end of March.

“They provide us with an in-depth understanding of the key strategic growth market that China represents, as well as the opportunity to access its range of technologies and components,” said Aston Martin of Geely.

Geely owns several brands including Lotus, Zeekr and Volvo.

"Our decision to increase our stake in Aston Martin reflects our confidence in the growth of the company, its technology and its management team," said Geely Chairman Eric Lee.

The investment will give Geely a 17% stake in the company and a seat on the board. Aston Martin expects profitability to improve this year as it starts deliveries of its next-generation sports car in the third quarter.

Prepared by: Ivan Mitic