MUMBAI: British private equity firm CVC Capital Partners has
further diluted its stake in motorsports racing company Formula
One with US asset manager Waddell & Reed Financial purchasing
5.5 per cent stake for approximately $500 million at an enterprise
value of $9.1 billion.
this deal, the private equity and investment advisory firms
stake will come down to about 35 per cent while that of Waddell
& Reed will go up to 20.9 per cent from the present 15.4
"CVC Capital Partners is pleased to announce that several
funds managed by Waddell & Reed Investment Management
Company and Ivy Investment Management Company have today agreed
to invest a further $500m in a private placement in Formula
1 at $9.1bn enterprise value, increasing their aggregate stake
to 20.9 percent," CVC said in a statement.
CVC had reduced its stake by selling 21 per cent stake to
three institutional investors - BlackRock, Waddell & Reed,
Norges Bank - in a cash for equity deal valued at $1.6 billion.
& Reed had invested $1.1 billion through its Asset Strategy
mutual funds and separate accounts. Norges Bank is believed
to have contributed around $300 million and BlackRock the
remaining $200 million.
will continue to be Formula One's largest and controlling
shareholder even after the stake sale while British billionaire
and F1 supremo Bernie Ecclestone holds 5 per cent stake in