Bloomberg News

CVC Sells $500M Formula One Stake to Waddell

June 16, 2012

CVC Capital Partners Inc., a part- owner of Formula One, sold $500 million of shares in the auto- racing series to Waddell & Reed Financial Inc. (WDR:US)

The sale values Formula One at $9.1 billion and boosts Waddell & Reed’s holding to 20.9 percent, CVC said in a statement. Waddell & Reed, BlackRock Inc. (BLK:US) and Norges Bank Investment Management paid CVC $1.6 billion for 21 percent of the company in an earlier deal announced May 22.

Formula One canceled $1.8 billion of loans sold last month after postponing an initial public offering, two people with knowledge of the matter said yesterday. Investors including CVC, which has been a controlling shareholder since 2006, had planned to raise as much as $3 billion by selling stock in Singapore.

Formula One is notifying lenders that the debt transaction won’t be completed as it was conditional upon the company pricing the IPO by June 30, said the people, who asked not be named because the deal is confidential. Goldman Sachs Group Inc. and Royal Bank of Scotland Group Plc arranged the loans, according to data compiled by Bloomberg.

The auto-racing group’s Chief Executive Officer Bernie Ecclestone said last month that the planned stock sale may not take place until later this year because of time pressures and a volatile equity market.

CVC bought about 63 percent of Formula One in 2005 and 2006 using $2.5 billion of loans. The buyout firm is seeking to take Formula One public after leading racing teams Ferrari, Red Bull and McLaren agreed to new terms through 2020.

To contact the reporter on this story: Jesse Riseborough in London at jriseborough@bloomberg.net

To contact the editor responsible for this story: Guy Collins at guycollins@bloomberg.net


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Companies Mentioned

  • WDR
    (Waddell & Reed Financial Inc)
    • $68.29 USD
    • 0.42
    • 0.62%
  • BLK
    (BlackRock Inc)
    • $308.38 USD
    • -1.77
    • -0.57%
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