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Gulf Governments Take A Bigger Slice Of Supercar Group McLaren

By News Creatives Authors , in Business , at January 1, 1970

Gulf sovereign wealth funds have increased their holdings in automotive group McLaren, with Saudi Arabia’s Public Investment Fund (PIF) following Bahrain’s Mumtalakat in as a shareholder.

McLaren is best known as a producer of luxury supercars and for competing in Formula 1 and IndyCar racing.


The group announced in the past few days that it had raised £550 million ($757 million) in new capital, including £400 million in preference shares from alternative investment manager Ares Management Corporation and the Saudi government’s PIF.

Existing shareholders, including Mumtalakat and a number of new private investors, are also investing a further £150 million in convertible preference shares, to allow for the repayment of a loan received in June 2020 from the National Bank of Bahrain.

The company said the fundraising transactions are subject to some conditions, including the raising of new senior secured financing to refinance existing debt.

It is not clear how much equity the fundraising involves. As of April this year, the largest shareholder in the group was Mumtalakat which held 56% of McLaren Group’s ordinary shares and 68% of its preference shares.

The second largest shareholder was TAG Group, which held 14% of McLaren’s ordinary shares and 14.5% of the preference shares.

Pandemic financing

The new fundraising by McLaren is the latest in a series of transactions by the group as it has tried to cope with the impact of the Covid-19 pandemic.

In June 2020, McLaren announced it had secured £150 million in funding without naming the source. It later emerged the money had been in the form of a 12-month loan from National Bank of Bahrain (NBB), which is 44% owned by Mumtalakat. In August, McLaren said it planned to raise equity “in the near future in order to take out this short-term financing”.

In December last year, U.S. sports investment group MSP Sports Capital and other investors acquired a significant minority shareholding in McLaren’s motor racing division.

In April this year, McLaren announced a sale and leaseback of its headquarters in Woking, to raise further capital.

Last year, McLaren withdrew its sponsorship from the Bahrain McLaren professional cycling team after one season. The team has since been renamed Bahrain Victorious and has had an eventful Tour de France, which ends today – with three stage victories at the time of writing as well as an investigation into alleged doping.



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