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Bahrain to take full ownership of McLaren F1 team, parent group

December 21, 2023 at 2:17 pm

Lando Norris, McLaren F1 MCL60 during practice ahead of the F1 Grand Prix of Abu Dhabi at Yas Marina Circuit on November 24, 2023 in Abu Dhabi, United Arab Emirates [Michael Potts/BSR Agency/Getty Images]

Bahrain’s sovereign wealth fund Mumtalakat is set to take full control of McLaren Group after the British supercar and racing group’s shareholders approved a full recapitalisation of the Woking-based company.

According to a report by Sky News, the Gulf state’s investment fund is “on the brink of a deal” which would see McLaren’s remaining minority shareholders effectively becoming McLaren’s sole owner, including the group’s coveted Formula 1 racing team.

Mumtalakat, which already owned a 60 per cent stake in the McLaren Group, made the announcement on Tuesday. The agreement could be announced as soon as this week as part of a deal and would involve about 20 per cent of the equity in McLaren being converted into new contracts, the report said.

Paul Walsh, McLaren Group Executive Chairman, said: “Completing the recapitalisation is a significant step in the ongoing transformation of the Group and provides a solid platform from which to grow our product offering and brand presence.”

READ: Plans for F1 teams to relocate HQs to Saudi Arabia 

While Shaikh Abdulla Bin Khalifa Al-Khalifa, chief executive officer of Bahrain Mumtalakat Holding Company, was quoted as saying the announcement was a “testament to the diligent steps that have been taken in what is a comprehensive and long-term plan with our partners to deliver an optimal governance structure as the Group continues to design and deliver the world’s most innovative and exhilarating supercars.”

In June, Mumtalakat increased its stake having acquired the McLaren shareholdings of Saudi Arabia’s Public Investment Fund (PIF) and Ares management, a major US-based financial investor.