Saudi Public Investment Fund takes stake in McLaren

McLaren Group on Friday announced a stake of 550 million pounds ($ 758 million), the majority of which will come from Saudi Arabia’s Public Investment Fund and global investment firm Ares Management.

The McLaren Group, which includes the British supercar maker, as well as the McLaren Formula One and Indy racing team in the US, will also compete in the Extreme E electric off-road series next year.

McLaren said the investment fund and Ares had offered $ 400 million in new capital, in the form of preferred stock and non-mandatory capital options.

The rest will come from existing shareholders in the form of convertible preferred shares, allowing the repayment of a loan that I took out in June of last year from the National Bank of Bahrain.

Bahrain’s Mumtalakat Sovereign Investment Fund is McLaren’s largest shareholder, with a 62.55% stake, according to its website.

Paul Walsh, CEO of McLaren Group, said: “Following the strategic investment we made in Racing last year, this successful capital raising is a key factor in our overall financial strategy to support sustainable growth plans. of the group.

With such strong organizations now in place, we are well positioned to deliver on our ambitions as a global luxury supercar company and among the motorsport elite, with cars driving McLaren’s main profits. “

McLaren acquired £ 300million from existing shareholders in March 2020 and completed a £ 170million sale and leaseback transaction at its Boeing headquarters in April.

U.S. investment group MSB Sports Capital also acquired a large minority stake in McLaren Racing last December in a deal that grossed £ 185million and eased pressure from the Covid-19 pandemic.

Automotive revenue in the first quarter of this year was £ 170.5million, an increase of 145% from the same period in 2020, which was hit by the pandemic.