F1: CVC Not Under Pressure To Sell Its Interest
Formula One’s commercial rights holders CVC Capital Partners are under no pressure to sell their controlling stake in the sport and want to keep it, co-Chairman Donald Mackenzie said Saturday.
He would not comment on reports that RSE Ventures, the investment vehicle of Miami Dolphins owner Stephen Ross, was teaming up with Qatar to buy CVC’s stake in a potential $7 – 8-B deal..
Asked at the British Grand Prix at the weekend whether the private equity fund had a deadline by which they had to sell their 35.5% stake, the media-shy businessman replied: “No, we don’t. There is no end date.
“We have 12 year funds, which we have to return the original money. We have already done that. So the pressure’s off,” added Mr. Mackenzie.
“We like owning it (Formula One), we do not want to sell it. There are always some people who would like to buy it, it is a very good business.”.
CVC sold down its holding from 63% in Y 2012 in deals that at the time gave the business an enterprise value, which includes debt and equity, of $9.1-B.
A source familiar with the matter said last month that a deal with Mr. Ross and the Qataris could be done within 6 weeks.
The source said Bernie Ecclestone, 84 anni, who has ruled over the sport for 40 yrs, would stay on to lead the racing side of the business.
Mr. Ecclestone said Saturday that “lots of people have made approaches” and indicated he too might be interested in a takeover or buyout.
“Donald Mackenzie doesn’t want to sell, simple as that,” he said, speaking inside his paddock motorhome. “He loves Formula One, loves the business.
“He may have to sell his shares.
“Whether he will invest himself, maybe with me separately, we will have to wait and see.”
Asked whether he might join a consortium including Red Bull or Mercedes, Mr. Ecclestone said: “Not those people.”
He said Mr. Ross was a “proper guy, a sporting guy, and from a business point of view” but was vague about any involvement with the American.
Constantin Medien last year brought a $100-M damages claim against Mr. Ecclestone in the London High Court over his involvement in the deal that brought CVC into the sport as top shareholder.
“I could work with anybody,” he said. “It doesn’t make any difference to me. He lost the case so why should I be upset with him? If he were here now, we’d probably be having dinner tonight.”
Have a terrific week.
HeffX-LTN
Paul Ebeling
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