McLaren Group received a £ 550m cash injection that will help secure the Formula 1 team’s future. Much of the new funding comes from Saudi Arabia’s Public Investment Fund (PIF), while another part comes from existing investors including Mumtalakat.
According to McLaren, 400 million pounds was obtained in exchange for preferred shares by “global alternative investment managers” Ares Management and PIF.
Existing shareholders, defined by McLaren as “a limited number of new private investors”, have invested £ 150 million in the form of convertible preferred stock.
According to McLaren, this deal will allow the repayment of the loan received just over a year ago by the National Bank of Bahrain. The completion of the agreements remains subject to mutually agreed closing conditions.
Saudi Arabia is already present in Formula 1 through the presence of the petrochemical sponsor Aramco and in December the first Grand Prix will take place which will be held on the citizen of Jeddah.
Aramco is one of many entities owned by the Public Investment Fund that has been spending a lot internationally over the past couple of years. Investments involved diversified interests including Boeing, Disney, CitiCorp, Facebook, BP and Marriott. Other companies in its portfolio include Uber, Tesla, and Total.
McLaren Group Executive Chairman Paul Walsh said, “Based on the short-term actions we took last summer in response to the global pandemic, McLaren has taken a number of significant steps to put the company on a solid footing. stable for the long term, with the close support of its advisors and existing shareholders “.
“After the strategic investment in Racing made last year, this capital increase proves to be a key element of our global financial strategy to support the Group’s sustainable growth plans”.
Walsh then specified how the road car business will also benefit from the new agreements: “With these solid foundations we have an excellent starting point for realizing our ambitions in the luxury supercar landscape and as an elite motorsport company. remains McLaren’s main profit driver. “
“The strong appetite we’ve seen from investors reflects continued confidence in the McLaren brand, industry-leading technology and exciting long-term growth prospects, supported by a more focused strategy.”
“We look forward to working with Ares and PIF and taking advantage of their experience and knowledge”.