F1: CVC Sells Another $500M Stake In F1 Business

Formula 1

F1: CVC Sells Another $500M Stake In F1 Business

CVC’s remaining stake in F1 is believed to be around 35 percent, while Bernie Ecclestone retains five percent...

Adam Cooper | http://www.speedtv.com | Posted June 16, 2012 Balen (BEL)

Formula One will move to a new media partner next year. (Photo: LAT Photographic)

CVC Capital Partners has sold a further stake in the F1 business in the aftermath of the decision to postpone the planned float on the Singapore stock exchange.

On May 22, CVC announced that it had sold 21 percent of the F1 company to Waddell & Reed, Norges Bank and BlackRock, for a total investment of US $1.6 billion in cash.

Waddell & Reed and its associates have now spent a further $500m, bringing its share up to nearly 21 percent on its own.

A CVC statement said: “CVC Capital Partners is pleased to announce that several funds managed by Waddell & Reed Investment Management Company and Ivy Investment Management Company have today agreed to invest a further $500m in a private placement in Formula One at $9.1bn enterprise value, increasing their aggregate stake to 20.9 percent.”

CVC’s remaining stake is believed to be around 35 percent, while Bernie Ecclestone retains five percent.

It remains to be seen what the long-term plans are regarding the IPO.

Adam Cooper notched up his 27th season as a racing journalist in 2011. He has written about F1 for SPEED.com since 2005. Follow him on Twitter.

ABOUT THE AUTHOR

Adam Cooper

MORE BY THIS AUTHOR

F1: Paddy Lowe Finally Confirmed At Mercedes
Paddy Lowe will join the team as Executive Director (Technical) Monday…
F1: We Need To Improve Qualifying, Says Massa
Felipe Massa says Ferrari is still not where it wants to be...
F1: Grosjean Pumped About Monaco Prospects
Romain Grosjean wrecked on the first lap of the 2012 Monaco GP...…