Liberty Media raises $1.55billion towards F1 takeover

Liberty Media's planned purchase of Formula 1 has taken another step forward as it announced it has raised $1.55billion to help complete the deal

Liberty Media raises $1.55billion towards F1 takeover

The American organisation agreed to become F1's biggest shareholder through the purchase of shares from a consortium of sellers led by majority shareholder CVC Capital Partners.

Liberty will acquire 100% of the shares of Delta Topco, the parent company of F1, and has completed an initial acquisition of a minority stake.

It has now entered into agreements with a group of third party investors to commit $1.55billion in subscriptions for newly issued shares of its Series C Liberty Media common stock at a price of $25 per share in connection with its acquisition of F1.

"This is a significant step in Liberty Media's transformative acquisition of Formula 1 and is further confirmation that the future of the sport is bright," said F1 chairman Chase Carey.

President and CEO of Liberty Media Greg Maffei added: "This group shares our enthusiasm for the sport and our belief in the opportunity to develop and grow it for the benefit of the fans, teams, sponsors and our shareholders.

"We look forward to closing the transaction in early 2017."

Liberty says the $1.55billion investment will be used to increase the cash required to complete the deal with F1's shareholders.

Following the completion of the acquisition, which is subject to the approval of its shareholders, the company intends to rename itself Formula One Group.

Liberty says third party investors will then own approximately 26% of the Formula One Group's equity, with the consortium of sellers led CVC still owning around 39%.

The third party investors and CVC will each nominate a representative to join the Liberty Media board of directors.

Shareholders are set to meet on January 17 to vote on the deal.

The deal also requires approvals by antitrust and competition law authorities in various countries, and from the FIA.

Providing all is well, Liberty expects the acquisition to close before the end of the first quarter in 2017.

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