(Yicai Global) May 19 -- Aston Martin’s stock price surged after Chinese automaker Geely Holding Group invested a further USD290 million in the British luxury carmaker to become its third-largest shareholder.

Aston Martin Lagonda Global Holdings [LSE: AML] closed up 12.5 percent at GBP260 (USD322.25) a share in London yesterday.

Geely has doubled its stake in Aston Martin to 17 percent, the two companies said in separate statements the same day. The Hangzhou-based firm will be granted the right to appoint a non-executive director to Aston Martin’s board as a shareholder representative and a second person as an observer, Geely noted.

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

“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,” Li noted.

Yew Tree Overseas, owned by Stroll, and Saudi Public Investment Fund are Aston Martin’s first- and second-largest shareholders, respectively.

Aston Martin’s revenue jumped 26 percent to GBP1.4 billion (USD1.7 billion) last year from 2021, driven by higher prices. In the first three months, its global sales rose 9 percent to 1,269 units from a year earlier, but in the Asia-Pacific, it sold only 260 cars, down 4 percent. The company’s first-quarter operating loss widened 7 percent to GBP50.9 million (USD63.2 million).

In addition to Aston Martin, Geely has invested in Mercedes-Benz, Proton Cars, and Lotus. It owns car brands Volvo, Geely, Lynk & Co, Galaxy, Zeekr, and Polestar.

Geely’s shares [HKG: 0175] dipped 0.4 percent to close at HKD9.42 (USD1.20) in Hong Kong today.

Editor: Futura Costaglione