CVC's Formula One Stock Flotation On Hold Amid Ecclestone Legal Toubles
Plans for a stock market flotation of F1 "remain stalled" as CEO Bernie Ecclestone "faces legal action that could break his long grip on the sport," according to Keith Weir of REUTERS. Private equity fund CVC said that a flotation "was still its aim, but ruled out any action in the short term to revive plans for a listing." CVC co-Chair Donald Mackenzie said, "One day we'd like to float the company. We've got no plans to do that in the imminent future." CVC has a 35.5% stake in F1 "having sold down its holding" from 63% last year. CVC put off plans to float F1 in Singapore in the middle of last year "because of market turmoil." Instead, it "brought in new investors" in the form of U.S. investment groups Blackrock and Waddell & Reed, along with Norway's Norges Bank, in deals that "gave the business an enterprise value" of $9.1B (REUTERS, 11/19).