Formula 1’s principal shareholder, CVC Capital Partners, has announced it has pre-sold $1.6 billion of its stake to a trio of investments groups ahead of the sport’s planned $3 billion part-floatation on the Singapore Stock Exchange next month.
The stake sold – amounting to roughly 20% of its total shareholding in the sport – has been carved up between the Waddell & Reed, BlackRock and Norges Bank Investment Management companies. This has reduced CVC’s shareholding in Formula 1 to about 40%.
This pre-sale has effectively valued the sport at $9.1 billion, an extraordinary amount given that the finer points of the sport’s future – particularly the still-to-be-finalised Concorde Agreement, the sport’s commercial rights and its succession planning structure (in the eventuality of Bernie Ecclestone’s death) – are still completely up in the air.
Several of the sport’s insiders believe that this value is wildly overstated as a result of these unknown factors, and it will be fascinating to see how the stock performs when it is floated in the coming weeks.
One only needs to look at Facebook’s seemingly failed public floatation – which has seen over $18 billion stripped from its value in the first two days of trading – to give a clear example of how ‘perceived’ value can wildly differ from its ‘actual’ worth.
And while you’re checking out the Singapore floatation, why not book yourself a great holiday package to this year’s Grand Prix? Simply mention RichardsF1.com and you’ll receive 5% off the land package price! Click on the thumbnail below…