CVC in move to float formula one shares to corner Asia
CVC Capital Partners may seek more than $2 billion from an initial public offering of shares in the formula one car-racing series, according to sources.
The private equity firm may sell a stake of about 20 per cent to raise that amount. Sources said CVC wanted to conduct the sale in Singapore as early as June, and was
in talks with investment banks over its plans, which were not final.
A Singapore listing would tap formula one's growing popularity in Asia and bolster the Singapore stock exchange's efforts to attract companies from around the world. In September, the exchange approved an IPO by Manchester United, but the sale was scuttled by volatile stock markets.
CVC, which hired Goldman Sachs Group to advise it on the formula one IPO, still had to retain other investment banks to help manage the offering, the sources said. CVC could not be reached for comment.
The IPO may value the sport at more than $US10 billion.
Formula One Management boss Bernie Ecclestone said last month he would not sell his 5.3 per cent stake and would remain in his position under CVC's plans.
CVC, which owns 63.4 per cent of formula one, bought its stake in a leveraged buyout with $US2.5 billion of loans. Other shareholders include administrators of Lehman Brothers Holdings, which holds 15.3 per cent, and Ecclestone's former wife, Slavica, who owns 8.5 per cent.
The series has annual sales of €1.17 billion ($A1.5 billion) and employs 200 people, according to CVC's website.