(Inautonews.com/GMM) CVC is not ruling out selling its 100 per cent ownership of formula one’s commercial rights, according to financial news specialists Reuters.
The report said “several sources” believe the private equity firm is conducting a strategic review of its stake for a potential “sale, IPO or debt refinancing”.
Reuters said “a number of would-be buyers”, including fellow private equity firms, sovereign wealth funds and other businesses, “have expressed interest” in buying F1.
“CVC would love to sell it but they’re not sure if they can get the right price at the moment,” said one of the sources.
The report mentioned that the bribery affair surrounding former F1 banker Gerhard Gribkowsky could complicate the sale.
But a sale “would suit the lenders as the existing financing is very cheap”, another source said.
F1 and CVC declined to comment.
CVC recapitalised Formula One’s $2.92 billion debt at the peak of the market in 2007 to pay itself a dividend, according to Thomson Reuters LPC data.
CVC bought a 75 percent stake in SLEC, the company that controlled Formula One’s commercial rights in 2005.