CHINA’S biggest automotive technology company, Geely, has doubled its shareholding in Aston Martin Lagonda after buying 42 million shares from Aston’s chairman Lawrence Stroll.

The purchase, which gives Geely a 17 per cent stake and makes it the British car-maker’s third-biggest shareholder, cost Geely about $A443 million.

The shares were bought from Mr Stroll’s company Yew Tree, currently Aston Martin’s largest stakeholder, at 335 pence ($A6.30) each and a subscription for another 28 million shares at the same price, raising about $A180 million in cash for the British firm.

At the end of March this year, Aston Martin’s debt stood at 868.1 million pounds ($A1.64 billion).

Earlier this month, the century-old company, which has gone bankrupt seven times in its history, said 2023 would be its “peak year” for capital spending.

In a statement, Geely said the increased shareholding in Aston Martin will form part of its strategic investment portfolio, which includes long-term equity stakes in global automotive brands.

Geely owns or is the majority shareholder in brands including Volvo, Polestar, Proton, Lotus, Lynk&Co, Zeekr, LEVC and Smart.

As part of the equity increase, Geely will also be given the opportunity to appoint a non-executive director to the Aston Martin board of directors as a shareholder representative, as well as to appoint a second person as an observer.

Geely chairman Eric Li said: “Our decision to increase our shareholding in Aston Martin reflects our confidence in the company’s growth prospects, its technologies and its management team.

“Since first acquiring our minority holding last September, we have worked collaboratively with executive chairman Lawrence Stroll and his colleagues and now look forward to exploring joint technology synergies and new growth opportunities to help this iconic automotive brand to achieve its full potential.”

Mr Stroll said: “This announcement is a further significant step towards delivering our ambition for Aston Martin. Geely Holding, who initially became a shareholder last year, sees tremendous potential for Aston Martin’s long-term growth and success.

“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.

“Geely shares our vision for Aston Martin and wants to be a more significant shareholder. This transaction enables the creation of a long-term partnership with Geely – a relationship that I believe will bring very significant value for all of our shareholders over time.”

By Neil Dowling