CVC Capital sells Formula 1 stake for $1.6 billion
|Tuesday, May 22nd 2012, 10:31 GMT|
CVC Capital has sold a $1.6 billion stake in Formula 1 to investors ahead of the sport's planned $3 billion IPO.
Formula 1's stock market flotation is planned to go ahead in Singapore next month, and sources have told the Reuters news agency that CVC has sold a stake of around 20 per cent of the sport to three investors including BlackRock.
As a result of the pre-IPO deal, CVC's stake is believed to have been cut to around 40 per cent.
BlackRock is an American multinational investment corporation as well as the world's largest asset manager.
The move gives Formula 1 an enterprise value of about $9.1 billion.
"We view this (pre-IPO deal) as a validation of the company's valuation," a source told Reuters about the deal.