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CVC have earned themselves $1.6 billion by selling 21% of their Formula One stakeholding, with three investment companies buying a part of F1. Waddell & Reed, BlackRock and Norges Bank Investment Management have taken the 21% stake, as CVC prepare to float Formula One on the stock market in Singapore.
The sale puts an anticipated value on Formula One at $7.6 billion when shares are expected to go on sale next month.
Managing partner at CVC, Donald Mackenzie says of the deal: “This is great news for Formula One and an important step in its development. We look forward to working with our new partners over the coming years.”
Meanwhile, strategy analyst Peter Elston added: “It raises some capital, which may be required, and it gives the IPO a little bit more credibility if some well-known investment houses come on board pre-IPO.”
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