PIF invests in McLaren Group for luxury, sports cars

Logo of PIF

British carmaker The McLaren Group announced receiving GBP 440 million ($550 million) equity investment from the Public Investment Fund (PIF) and Ares Management.

In a statement, the group explained that these investments are in return for preference shares, adding that current shareholders and a limited number of new investors will invest an additional GBP 150 million ($206.6 million) in exchange for convertible preference shares.

The additional investments will repay the loan received from National Bank of Bahrain in June 2020, and properly determine the capital.

The capital increase is subject to the terms of the agreement, including the increase in new secured financing that the group intends to use to refinance its current secured bonds.

The deal follows a series of successful strategic financial initiatives taken by the group following the effects of the coronavirus pandemic, with MSP Sports Capital and other strategic investors acquiring a significant minority stake in McLaren Racing and the group remaining the largest shareholder.

The firm also explained that the deal allowed it to retain a significant stake in its Formula 1 team while bringing in strategic partner capital to reduce racing risk and allow the group to focus on its leading automotive business.

The group said it succeeded last April in selling and leaseback its headquarters in Woking, UK, in order to increase capital growth in the business.

McLaren Group is a British company founded in 1963 working in luxury cars, sports cars and technology.