Mumtalakat increased it stake at McLaren Group buying off that of Saudi Arabia’s sovereign wealth fund reinforcing its position as the group’s biggest shareholder.
Bahrain’s state investment fund Mumtalakat is buying preference shares and warrants worth 400 million pounds ($510.48 million) in carmaker McLaren from Saudi Arabia’s Public Investment Fund (PIF) and Ares Management, Sky News reported on Wednesday.
The transaction will not lead to any new money being injected into McLaren, the Sky News report said, adding that an announcement from Mumtalakat on the deal will come on Thursday.
The purchase will expand Mumtalakat’s majority stake in McLaren group, which includes the British supercar maker as well as McLaren Racing.
In July 2021, global investment firm Ares Management and Saudi’s PIF provided much of a 550 million-pound equity investment in the McLaren group.
Bahrain’s sovereign wealth fund could not be reached for comment. Ares Management declined to comment, while McLaren and the PIF did not immediately respond.
In June of last year, Mumtalakat’s chief executive, Khalid Al Rumaihi, told Reuters that he expected McLaren to go public in two to three years.
The McLaren’s Formula 1 team is currently competing in the 2023 F1 season, with drivers Lando Norris and Oscar Piastri leading the teams charge in their 2023 F1 car, the MCL60.
It has been a tough season so far for McLaren as they are currently sitting sixth in the 2023 F1 Constructors’ Standings with 17 points only.
McLaren F1 Team have recently undergone a major technical shakeup with James Key leaving the team and joing Alfa Romeo, Rob Marshall was hired from Red Bull as part of the restructuring process.
McLaren have won 183 F1 races over their 58 seasons in the sport. The team won eight F1 Constructors’ Titles with 12 F1 Drivers’ Crowns.
The team’s last win goes back to the 2021 Italian Grand Prix which was achieved by their former driver Daniel Ricciardo.(Reporting by Bharat Govind Gautam)