McLaren Considering Sale of a Minority Stake in F1 Team
2020-06-21 - 4:37 am
Bahrain Mirror- Reuters: McLaren are considering selling a minority stake in their once-dominant Formula One team to raise funds to help the company weather the COVID-19 crisis, Sky News reported on Wednesday.
It said the proposal was at a ‘conceptual stage' alongside other options, including raising capital from existing bondholders.
There was no immediate comment from McLaren.
Bahrain's Mumtalakat holding company is the majority shareholder in McLaren Group, with a 56% stake, followed by the TAG Group led by Saudi-born businessman Mansour Ojjeh with 14%.
The COVID-19 pandemic has hit the sportscar maker hard, with sales plunging during the factory shutdown. The company announced 1,200 redundancies in May under a group-wide restructuring.
Formula One is introducing a $145 million annual budget cap next year, falling subsequently to $135 million, which should help teams such as McLaren compete on a sustainable basis.