Reuters – CVC Cuts Ownership in Formula One

Private equity firm CVC Capital Partners will cut its ownership stake to about 30% in the Formula One motor racing business after the company’s up to $3 billion IPO by selling shares on the public market, Reuters reported Thursday. CVC currently holds about 42% of Formula One after it recently sold a $1.6 billion stake to a group of investors, including the investment management firm BlackRock.

(Reuters) – Private equity firm CVC Capital Partners will cut its ownership stake to about 30 percent in the Formula One motor racing business after the company’s up to $3 billion IPO by selling shares on the public market, sources said on Thursday.

 

CVC currently holds about 42 percent of Formula One after it recently sold a $1.6 billion stake to a group of investors, including the investment management firm BlackRock.

 

That sale was key to set a benchmark valuation of Formula One for CVC and current shareholders, including billionaire F1 chief Bernie Ecclestone, the estate of bankrupt investment bank Lehman Brothers and JPMorgan.

 

Formula One will seek a valuation of about 18-22 times its earnings for the IPO, sources with direct knowledge of the plans told Reuters.