Ecclestone and BayernLB sell F1 holdings
25/11/2005 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. The sale comes at a time when the Grand Prix Manufacturers' Association is pressing ahead with plans for a 'breakaway' series in 2008. 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. |
