Motorsport News - F1
CVC sells another stake in Formula One
20th June 2012
Waddell & Reed Investment Management Company, an American fund manager which was one of three investors in the sport last month, and its Ivy Investment Management Company offshoot have invested a further US$500 million to take an aggregate 20.9 per cent of the business and become its second largest stakeholder.
The deal, which was confirmed in a brief statement on the CVC corporate website, values Formula One at some US$9.1 billion and comes after news that the private equity firm has delayed the proposed flotation of the sport in Singapore.
A Formula One insider told SportsPro last week, however, there was "no urgency" over the flotation, with CVC happy to wait until the markets are less volatile.
In May CVC sold 21 per cent of the business for US$1.6 billion to three investors, Waddell & Reed, Norges Bank Investment and BlackRock.
That sale reduced CVC's stake from 63 per cent to around 40 per cent. Selling the latest chunk is understood to have reduced its stake further to 35.5 per cent.
Details of the proposed Singapore IPO, including precisely how much of the Formula One business will be included, remain under wraps.
Separately it has emerged that the former chief executive of Allsport, which runs Formula One's trackside advertising and corporate hospitality programmes, received a 0.1 per cent share in Formula One despite leaving his role in March after less than a year.
Britain's Daily Telegraph newspaper reported that David Campbell, a former chief executive of London's O2 Arena, and his wife are now listed as stakeholders on company documents. The stake could ultimately be worth up to US$10 million based on Formula One's potential value when it goes public.
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