Monday, July 5, 2010

The Investment Dar - Good News? Aston Martin Planning a Stock Offering


If the report in AlQabas (which quotes the Internet financial site, City AM,) proves to be correct, there could be some very good news for TID and its eager creditors.

David Richards, Austin Martin's Chairman, is quoted as saying that AM is considering an IPO with valuations mooted in the GBP 1 billion range.  Or a tie up with another manufacturer.

And the news couldn't have come at a better time for TID as the Central Bank of Kuwait carefully considers E&Y's "fateful, final" report on TID's financial position and its ability to meet its obligations under the proposed restructuring as the basis for its decision on letting TID enter the "safe harbour" of the FSL.

Of course, there can be many a slip twixt cup and lip, particularly when one is only at the stage of considering an IPO.   

One might, I suppose, also wonder about the credibility of this source which believes that Austin Martin "is majority owned by the Kuwaiti sovereign wealth fund Investment Dar, which bought it for £503m from Ford in 2007." 

2 comments:

Laocowboy2 said...

City AM is OK on city matters but knows as much about the GCC as I know about Uruguayan politics (zip). they are probably reasonably well informed on AM however - and if I was owned by a rather flaky and very bust Gulf investor, I too would want new shareholders on board asap.

Abu 'Arqala said...

Laocowboy2

Thanks.

"Flaky" is in some respects I suppose a charitable description. And E&Y may differ with your characterization of "bust".

The KD64,000 question is which "wise investor" would be interested in Austin Martin given that Ford couldn't make a go of it as well as the current high potential for the industry.

(1) Interested corporate buyers from the inscrutable East intent on technology transfer and a brand name though at least one candidate sadly likely to be frugal?
(2) Rich individuals long on money and ego but short on common sense?
(3) A SWF from these sandy shores long on cash but short on due diligence skills?
(4) Retail trade long on patriotism. A legion of Jim's out there. "Best car England ever made. Out of production due to Socialism"?