British conglomerate McLaren Group is mulling plans to sell around 20 to 30 per cent of shares in its F1 team as it struggles financially, reports say.
The plans according to Sky News are in the making and also considers other funding options, including raising capital from existing bondholders.
The British group is looking to relinquish between 20 and 30 per cent. It is unclear how much the operation could yield but the sovereign wealth fund Bahrain Mumtalakat Holding Co.-control entity is in search of new liquidity to surf the adverse impact of the covid-19 pandemic.
The group has delayed the Formula 1 racing series and halted automotive production owing to the pandemic. The company’s ability to sell cars during the second quarter has been severely impacted by the coronavirus outbreak according to chief financial officer Paul Buddin who was speaking on a conference in April.
Bloomberg last month reported that the group is seeking about 300 million pounds ($374 million) in fresh funding just months though it managed to raise similar capital.
The Woking-based company won eight times the F1 constructors’ championships and signed renowned drivers including Mika Hakkinen, Lewis Hamilton, Alain Prost and Ayrton Senna.
Bahrain-backed McLaren Group to sell shares in search new investment for F1 team
