F1: Saudi PIF sells McLaren stake to Mumtalakat (Update)

–by Mark Cipolloni–

It has now been officially announced – Bahrain’s sovereign wealth fund Mumtalakat has consolidated its hold on British carmaker McLaren by buying stakes from Saudi Arabia’s Public Investment Fund (PIF) and Ares Management for GBP400 million (US$510 million).

Saudi Arabia’s sovereign wealth fund is selling its stake in McLaren, the supercar maker and Formula 1 team-owner, in a deal that will reinforce Bahrain’s status as the company’s biggest shareholder.

Sky News reports that Mumtalakat, Bahrain’s state investment fund, will announce on Thursday that it is buying the preference shares in McLaren Group held by Saudi’s Public Investment Fund (PIF) and Ares Management.

The transaction, which is a private one between shareholders and will not lead to any new money being injected into McLaren, will come almost two years after PIF and Ares invested £400m in McLaren as part of a broader fundraising. More at Sky News