Mumtalakat, Bahrain’s sovereign wealth fund, is reportedly exploring the option of promoting its shares in the McLaren Group, according to a report in the Sunday Times. The sovereign wealth fund has leveraged the expertise of global monetary advisers to find a buyer, in line with the direction of Bahraini leaders.
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In a major development for the automotive and racing sectors, Bahrain’s sovereign wealth fund, Mumtalakat, is contemplating promoting its significant stake in the McLaren Group. The move comes as a reaction to economic directives issued by King Hamad bin Isa Al Khalifa and reflects the financial problems facing McLaren. , which has relied on Mumtalakat for extensive tax relief during the difficult times brought on by the pandemic and other financial headwinds.
Mumtalakat’s financial adventure with McLaren has been characterised by examples of support, adding a first emergency investment initiative of £300 million in 2020 to deal with the financial difficulties caused by the pandemic. This was followed by an ambitious £1 billion capital injection in 2021, aimed at strengthening McLaren’s monetary position through a variety of means, including the sale and subsequent lease of its headquarters, the sale of part of its traditional car collection and the securing of a joint investment in Saudi Arabia’s sovereign wealth fund.
The consolidation of Mumtalakat’s stake in McLaren was achieved through the acquisition of £400 million in shares and guarantees from entities such as the Saudi Public Investment Fund and Ares Management. Despite those efforts, McLaren’s monetary losses, which more than doubled to £349 million in 2022 compared to last year, would have prompted Mumtalakat to reconsider his involvement.
To that end, Mumtalakat engaged JP Morgan, a leading monetary institution, to identify a potential customer after committing a really hefty £1. 5 billion to McLaren over four years. The aim is to attract a “strategic partner” specialising in the production of electric vehicles. vehicles, similar to McLaren in electrification. The potential partnership could start with a minority stake and expand in the future, which could lead to Mumtalakat retaining a smaller stake in McLaren.
Discussions on this possible transition are at an early stage and a wide variety of aspects are being considered. The search for potential partners goes beyond the classic automotive industry and the final agreement does not necessarily require an exchange of inventories.
Lydia is the editor-in-chief of the F1 publishing house. After following the game for several years, he was nevertheless able to attend the British Grand Prix in 2017. Since then, she has not only been addicted to racing, but also to the environment that enthusiasts bring to each event. She is a strong advocate for women in motor games and a more varied industry.