CVC Capital sells Formula 1 stake for $1.6 billion

[zakfourie]

CVC Capital has sold a $1.6 billion stake in Formula 1 to investors ahead of the sport's planned $3 billion IPO.

Formula 1's stock market flotation is planned to go ahead in Singapore next month, and sources have told the Reuters news agency that CVC has sold a stake of around 20 per cent of the sport to three investors including BlackRock.

As a result of the pre-IPO deal, CVC's stake is believed to have been cut to around 40 per cent.

BlackRock is an American multinational investment corporation as well as the world's largest asset manager.

The move gives Formula 1 an enterprise value of about $9.1 billion.

"We view this (pre-IPO deal) as a validation of the company's valuation," a source told Reuters about the deal.

autosport.com/f1

[sagi58]

9.1 Billion? Somebody's calculator needs to be recharged!!

Mathematics 101:

They've reportedly sold 20% for 1.6 Billion, that would make 100% worth about 8 Billion, right?
If they're expected to float another 3 Billion, how does this reporter figure that F1 is worth "only" 9.1 Billion?

[zakfourie]

Forgive me for asking, didn't study business degrees or 'go pro on NYSE', but what does it mean if a business is flotated...?

[Greig]

I think it would change the business from a private one to a public one, with me or you able to buy shares in the public company and raises them a load of cash. But then again I am not too sure either

[zakfourie]

Yeah that's my idea too but not too sure about it. I've heard it so many times on documentaries especially the ones about the companies in Silicon Valley.

But it does mean tears as far as I understand...

[Liscia]

It's quite fitting really, F1 Lottery (as it now is) joins larger stock market lottery? More
suits in F1, and not driving suits either,hah!