Team McLaren now has a seat on the formula one board

It may of come as a shocking surprise to most individuals to find out that McLaren have been given a seat on the board. Britain's Mclaren team Formula one boss Bernie Ecclestone a the seat along side the holding company Ferrari and Red Bull. This will help to off set the oppositions move to float the the multi-billion dollar motor sport on the stock market. The Singapore stock market to be exact. McLaren based in Woking Surrey F1 team is the 2nd most successful team and is home to the previous world champions Jenson Button and Lewis Hamilton. The race is taking place amid large pro-democracy protests against the country’s ruling regime, which exerts influence over McLaren as its Mumtalakat wealth fund owns 50 per cent of the team. Sources have confirmed that F1’s board has not yet voted to approve an initial public offering of the business, but they confirm that its majority owner, private equity firm CVC, is working towards a flotation in June. They said this could be delayed until October or shelved, depending on market conditions and whether there are going to be any problems in getting board approval.

It is understood that a decision to go ahead with the float will be put to the board of F1’s Jersey-based parent company Delta Topco next month. One source said the majority owner, private equity firm CVC, was aiming to be ready by June. Goldman Sachs and UBS have been hired as the lead banks and the deadline for applications from second-tier junior banks was on April 13. The source added: ‘Formula 1 generates about $500million (£310 million) a year in profits and cash flow and when you capitalise that at the right sort of multiple and yield that’s a big number.’ He said he thought a $10 billion valuation of the business would be ‘about right’. Read more: http://www.thisismoney.co.uk/money/news/article-2133249/McLaren-team-wins-seat-board-float-Formula-1-looms.html#ixzz1swr7Cy9e