China's Geely raises stake in Aston Martin to 17%

HANGZHOU - Zhejiang Geely Holding Group on Thursday announced that it has increased its stake in British sports car maker Aston Martin to about 17 percent.

Geely Holding first acquired a 7.6-percent stake in Aston Martin last September.

The increased stake makes Geely Holding the third-largest shareholder in Aston Martin, the terms of which were announced by Aston Martin in a statement to the London Stock Exchange.

The increased shareholding in Aston Martin will form part of Geely Holding's strategic investment portfolio, which includes long-term equity stakes in global automotive brands, the Chinese automotive technology group said in a press release.

As part of the equity increase, Geely Holding will be able to appoint a non-executive director to the Aston Martin board, as well as appointing a second person as an observer.

"Our decision to increase our shareholding in Aston Martin reflects our confidence in the company's growth prospects, its technologies and its management team," said Li Shufu, chairman of Geely Holding Group, in the statement.

"Geely can offer us a deep understanding of the key strategic growth market of China as well as the opportunity to access their range of technologies," said Lawrence Stroll, executive chairman of the board with Aston Martin.