Brought to
you through the
British automaker sells stake and receives £ 400 million in new capital from the Gulf State’s Public Investment Fund.
Getty Images
- 150 million British pounds are to come from existing shareholders
- Deal would mean McLaren sells more than $ 1 billion as of March 2020
Saudi Arabia’s Public Investment Fund (PIF) is in advanced talks to acquire a stake in McLaren as part of a £ 550 million ($ 760 million) equity increase for the Formula 1 team and the automaker, according to Sky News .
The transaction will reportedly include £ 400 million ($ 553 million) in new capital from PIF and global investment manager Ares Management. £ 150 million ($ 207 million) is expected to flow into the company from McLaren’s existing shareholders, including Bahrain’s sovereign wealth fund Mumtalakat.
The cash injection was reportedly completed on July 16 and may be delayed.
Sky News adds that assistance from the Saudi sovereign wealth fund could open the doors to a number of commercial deals involving McLaren and the Gulf State.
A large number of other investments by PIF have been in technology companies, including electric vehicle startup Lucid Motors. Sky News notes that this commitment could be beneficial to McLaren as it develops more hybrid and electric cars. The British racing team will also join the Extreme E electric SUV series from 2022 and will have the option of joining the all-electric Formula E championship from the 2022/23 season.
The reported deal with PIF would bring the total amount McLaren has raised since March 2020 to well over £ 1 billion ($ 1.4 billion). Of this, £ 300 million ($ 415 million) in equity came from shareholders. This was followed last December by an investment of £ 185 million ($ 256 million) from a consortium led by MSP Sports Capital, which has a 15 percent stake in McLaren. In April of that year, McLaren agreed to the sale-and-leaseback of its Woking factory, which was sold to Global Net Lease (GNL) for £ 170 million ($ 235 million).
With Saudi Arabia set to host its first Grand Prix this December, PIF also announced last month that it would support the E1 championship for electric motor boats ahead of the series’ launch in 2023. The agreement also envisages Saudi Arabia as a race location.
McLaren’s Formula 1 team has announced a partnership with tool and storage company Stanley Black & Decker.
The US manufacturer will support McLaren on and off the track by providing the team with a range of tools. The partnership also includes engagement events and experiences, with Stanley Black & Decker securing the branding on the rear wing end plates of McLaren racing cars and racing suits.
McLaren is third in the constructors ‘championship this weekend in the Great Britain Grand Prix, with drivers Lando Norris and Daniel Ricciardo finishing fourth and eighth in the drivers’ championship, respectively.
The post McLaren is to receive a capital injection of 550 million as part of the Saudi state investment first appeared on monter-une-startup.
