McLaren Group is about to embark on a major transformation with the announcement of its recapitalization, led by Bahrain’s sovereign wealth fund, Mumtalakat. While discussions are underway to make the fund its sole owner, this strategic evolution is part of a series of significant changes recently undertaken by McLaren to strengthen its position in the luxury automotive industry.
McLaren Group shareholders have agreed to a full recapitalization, according to an announcement by Bahrain’s sovereign wealth fund, Mumtalakat, on Tuesday December 19. The deal aims to simplify the share structure, streamline governance and expand the luxury carmaker’s presence in new markets.
The proposed recapitalization will introduce a simplified share structure, with a streamlined governance process, reflecting efforts to strengthen McLaren Group’s financial and operational stability.
Discussions are underway between Mumtalakat and minority investors with a view to making the fund the sole owner of McLaren. According to Sky News, around 20% of McLaren’s equity could be converted into new contracts, representing a significant change in ownership structure.
Last June, Mumtalakat announced an increase in its stake in the McLaren Group, encompassing both the British supercar manufacturer and McLaren Racing. On this occasion, the sovereign wealth fund acquired shares and warrants worth 400 million pounds ($508.92 million) from the Saudi Arabian Public Investment Fund (PIF) and Ares Management.
New contracts
The new contracts resulting from this recapitalization will confer economic rights linked to possible “liquidity events” such as an IPO. However, they will not be considered as shares, thus offering an innovative perspective in the financial governance of the company.
Despite these developments, McLaren Group has not yet commented on the situation. The announcement of the deal could come later this week, according to reports.
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Photo à la Une : ©McLaren
