Mumtalakat, the Gulf state’s sovereign wealth fund, will effectively become McLaren’s sole owner as part of a deal that could be announced as early as this week, Sky News has learned.
From Sky News
Last updated: 19/12/23 20:49
Bahrain’s sovereign wealth fund will take full ownership of the McLaren Group as part of a long-term plan to secure partnerships with global industry giants.
sky news Gulf investment fund Mamtarakat has learned it is on the brink of a deal with McLaren’s remaining minority shareholders to convert their shares into warrant-like products.
The new contract will have economic rights to benefit from future “liquidity events” such as McLaren’s initial public offering, but will not be classified as stock.
A bank official said he expected a deal could be announced later this week.
This will see around 20 per cent of McLaren’s shares converted into a new deal, leaving the state of Bahrain as the F1 team’s ownership group’s sole shareholder.
McLaren Racing, the division directly responsible for running F1 and other races, has its own external shareholders after striking deals to raise capital during the pandemic.
A source said the deal to be signed this week underlines Mumtalakat’s continued confidence and leadership in driving McLaren’s rebuild.
McLaren boss Zak Brown is hoping for a strong start to the new season as he aims to close the gap on Red Bull in 2024.
The Woking-based company’s complex capital structure has acted as a hindrance in recent years to the ability of global automotive groups to build long-term partnerships with the company.
As McLaren transitions into a hybrid and electric vehicle company, simplifying its structure could pave the way for technology partnerships with automotive original equipment manufacturers (OEMs) in the coming years. there is.
Earlier this year, Mamtarakat acquired McLaren’s stake in Saudi Arabia’s sovereign wealth fund and Ares Management, a major US-based financial investment firm.
It was recently reported that a Bahrain-based fund had injected a further £80m into the company, which makes the Artura supercar.
Lando Norris believes McLaren can have a “great year” in 2024 as they aim to take on Red Bull.
McLaren has suffered delivery delays with the Altura, which, while well-received, required a series of technical upgrades.
Last year, McLaren appointed former Ferrari executive Michael Reiters as head of its road car division.
During the coronavirus pandemic, the company was forced to undergo an extensive restructuring, cutting hundreds of jobs and raising significant amounts of equity and debt to repair its balance sheet.
McLaren has seen an upturn in its racing division under Zac Brown, who heads the company’s division, including the F1 cars that Lando Norris and Oscar Piastri will drive this year.
Relive how McLaren rose from the back of the pack to the front of the grid during the 2023 F1 season.
McLaren has also undertaken a series of corporate deals since the start of the pandemic and sought government loans, a request that was rejected by ministers.
Mr Walsh has overseen the sale of a stake in McLaren Racing to another group of investors, as well as the £170m sale and leaseback of the company’s spectacular Surrey headquarters. In 2021, it also sold McLaren Applied Technologies, which generates revenue from sales to corporate customers.
Founded in 1963 by Bruce McLaren, the group’s name is one of the best known in British motorsport. During its half-century of involvement in F1, the company has won eight constructors’ championships, with drivers including Mika Hakkinen, Lewis Hamilton, Alain Prost and Ayrton Senna.
In total, the team won 180 Grands Prix, three Indianapolis 500s, and the Le Mans 24 Hours in its debut.
The company’s separate divisions were reunited following the departure in 2017 of veteran McLaren manager Ron Dennis, who led the F1 team through the most successful period in McLaren’s history. Mr Dennis sold his shares in a £275m deal after a bitter dispute with other shareholders.
sky sports news McLaren has been contacted for comment.