16/07/2021
NEWS STORY
McLaren has confirmed that numerous investors have injected a further £550m into the company.
It's understood that the investors include Saudi Arabia's sovereign wealth fund, along with existing shareholders, including Bahrain's Mumtalakat.
Other than paying off an existing loan from the Bank of Bahrain, the money, which comes in the form of convertible preference shares, will support the growth plan set out by executive chairman Paul Walsh, who recently joined McLaren from drinks giant Diageo.
"The transaction supports the company's growth plans as a global luxury supercar and elite motorsport business, with Automotive as McLaren's core profit driver," said McLaren in a statement.
"Building on the short-term measures that we put in place last summer in response to the global pandemic, McLaren has taken a number of significant steps to put the company on a stable footing for the long-term, with the close support of its advisors and existing shareholders," it continued.
"Following the strategic investment into Racing that we secured last year, this successful equity raise is a key element of our comprehensive financial strategy to support the Group's sustainable growth plans.
"With these strong foundations now in place, we are well positioned to achieve our ambitions as a global luxury supercar and elite motorsport business, with Automotive as McLaren's core profit driver. The strong appetite we have seen from investors reflects the continued confidence in McLaren's iconic brand, industry-leading technology and exciting long-term growth prospects, underpinned by a more focused strategy and a stronger, more efficient capital structure.
"We look forward to working with Ares and PIF as they contribute their experience and knowledge to the Board."
Sidelined this weekend after testing positive for Covid, Zak Brown tweeted: "Positive news for our major shareholder McLaren Group with £550m of new investment as part of long-term financial plan."
Check out our Friday gallery from Silverstone, here