CVC sells $1.6-bn stake in Formula 1 ahead of IPO
23 May 2012
British private equity firm CVC Capital Partners, the majority shareholder in the prestigious Formula One Group (Formula 1) has sold a 21-per cent stake in the company worth $1.6 billion to three leading investment groups ahead of its forthcoming $2.5-billion initial public offering (IPO) in Singapore.
The buyers include US investment management firms BlackRock Inc and Waddell & Reed Financial Inc as well as Norwegian Central Bank's investment arm Norges Bank Investment Management. Further to the deal, CVC's stake in Formula 1 will be reduced to approximately 40 per cent.
''This is great news for Formula 1 and an important step in its development,'' CVC's managing partner Donald Mackenzie said in a statement.
''The addition of these three highly regarded investors to our share register is validation of this success, and we look forward to working with our new partners over the coming years," he further said.
Formula 1 holds the highest class of single-seated auto racing sanctioned by the International Automobile Federation (FIA), held on purpose-built circuits and public roads.
It conducts 20 races across the world yearly and has over 500 million TV viewers.
