Mumtalakat is already the company’s largest shareholder and gaining full ownership could help attract large OEM partnerships.
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McLaren Group will soon come under full ownership of Bahrain’s sovereign wealth fund, according to a new report.
Bahraini wealth fund Mumtalakat is currently the largest shareholder in the British car manufacturer and racing company with a stake of around 60%. It has now been reported that the Fund is finalizing an agreement with McLaren’s remaining minority shareholders, which would see them convert their shares into warrant-like products and give the Fund full ownership of the brand. Includes providing ownership.
sky news Although these contracts offered to minority shareholders are not classified as equity, minority shareholders report that they are entitled to benefit from significant liquidity events, such as McLaren’s potential initial public offering. The agreement could be announced as early as this week.
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The company’s complex capital structure is said to have deterred it from partnering with major automakers, with Sky News reporting that a simpler ownership structure “could pave the way for technology partnerships with OEMs in the coming years.” This suggests that there is a possibility that
Mumtalakat increased its stake in McLaren throughout this year. It has already acquired stakes previously held by Saudi Arabia’s sovereign wealth fund and US financial investor Ares Management.
The past three years have been a very turbulent financial period for automakers. The coronavirus pandemic has not only prompted redundancies, but also forced the company to sell a major stake in its McLaren Racing division and completely shut down operations at McLaren Applied Technologies. The company also sold its famous headquarters in the United Kingdom for $237 million, which it now leases as part of a 20-year agreement.
Earlier this week, McLaren updated the GT with the launch of the new GTS. This refreshed model has slightly more power, less weight, and a more advanced suspension system than its predecessor.