CVC Capital Partners buy F1 controlling stake

[Dhruv]

LONDON-based buyout group CVC Capital Partners is on the verge of taking control of Formula One motor racing's purse strings, bringing an end to Bernie Ecclestone's financial interest in the sport.

CVC has agreed to buy the Ecclestone family trust's stake in SLEC, which owns the rights to the sport.

SLEC is owned 75% by three banks, BayernLB, JP Morgan and Lehman Brothers, with the remainder in the hands of the family trust of F1 supremo Bernie Ecclestone.

CVC is buying the stakes held by Bayern and the Ecclestone trust for an undisclosed price. The trust's 25% holding is said to be worth $1bn.

CVC is also believed to be in talks with the two US investment banks about buying their 28% stake in SLEC.

There are some news agencies that are carrying the report as well.

[jaydeep]

Yes as per Pit Pass report sale is already done ... CVC Capital Partners r one of new owner, who r trying to took whole control with trying to buy remaining shares.

Bernie Ecclestone and BayernLB, one of three banks that own 75 percent of F1, have sold their stake in SLEC, the Formula One group holding company, to CVC Capital Partners, an independent investment and advisory company, for an undisclosed price. Of the 75 percent owned by the three banks, BayernLB owns just over half. According to reports, CVC is negotiating with the other two banks - JPMorgan and Lehman Brothers - in an attempt to buy their shares

Founded in 1981 as Citicorp's European private equity arm, CVC subsequently carried out its own buy-out in 1993 and is now owned by its management, led by Michael D.C. Smith. However, it still advises Citigroup on its European investments. One interesting point is that CVC owns Dorna, which runs MotoGP, a sport that is increasingly gaining global popularity. Ecclestone knows Dorna well, having sold it the rights to the Motorcycle World Championship.

Here r little info about CVC and comments from all parties who r involved in this deal.

CVC Capital Partners, Bayerische Landesbank and Bambino Holdings are pleased to announce that a new company, Alpha Prema has reached agreement to acquire Bayerische Landesbank's and the S. Ecclestone trust's interests in Formula One Group. Closing is conditional on EC merger clearance and FIA consent. The shareholders of Alpha Prema will be CVC Capital Partners, Bambino (through a reinvestment), Mr Bernie Ecclestone and the Formula One management team. CVC will have a majority stake in Alpha Prema and a controlling interest in the Formula One Group. Bernie Ecclestone will remain as Chief Executive of the Formula One Group and Dr Gerhard Gribkowsky (currently Chairman of SLEC Holdings), Donald Mackenzie (CVC) and a Bambino representative will join the Board of Alpha Prema.

CVC is a leading private equity firm in Europe and Asia, and has experience of investing in motorsport and rights management, through its ownership of Dorna, the company that organises and manages the commercial rights of the FIM Road Racing World Championship Grand Prix (MotoGP), which was acquired by CVC in 1998. CVC is also a controlling shareholder of the Automobile Association in the UK.

Mr Ecclestone: We are delighted to have CVC as a shareholder whose long-term strategies and vision will provide the stability for teams, promoters and manufacturers. They are knowledgeable about motor sport and make an ideal partner for Formula One.

Mr Mackenzie: CVC is committed to a flourishing and successful FIA Formula One World Championship, and will support every effort being made to maintain Formula One at the pinnacle of world motor sports. CVC has given its full support to the current discussions between Formula One, the teams and manufacturers to enable a successful extension of the current Concorde Agreement.

Dr Gerhard Gribkowsky: Bayerische Landesbank is pleased to sell its stake to a reputable investor with a long term view and considerable knowledge and experience in motorsport. With CVC as shareholder and with the continued commitment of Mr Ecclestone and Bambino, Formula One will have the resources to further develop the business and the sport to its full potential.

Jaydeep.