CVC cuts Formula One stake in $500m deal

 
City A.M. Reporter
US ASSET management company Waddell & Reed increased its stake in the Formula One motor racing business to 20.9 per cent from around 14.4 per cent over the weekend, in a $500m (£318.07m) deal after the motor racing business put flotation plans on hold.

Private equity firm CVC, since 2006 the largest shareholder in Formula One, has now cut its stake to around 35 per cent from 63 per cent in deals in recent months.

The deals have helped ease pressure on CVC to list Formula One. The business put plans to float in Singapore on hold two weeks ago because of volatile markets.

“Several funds managed by Waddell & Reed Investment Management Company and Ivy Investment Management Company have today agreed to invest a further $500m in a private placement in Formula One at $9.1bn enterprise value,” CVC said in a statement.