Mumtalakat, the sovereign wealth fund of Bahrain, has agreed a “full recapitalisation” of McLaren Group, which sees a “simplified share structure and streamlined governance process” moving forward.
The announcement came following unanimous approval of the McLaren Group board, which oversees the McLaren Automotive and McLaren Racing divisions, for its road and track endeavours respectively.
A report from Sky News late on Tuesday night had claimed that Mumtalakat, already a majority shareholder in McLaren Group, had been set to effectively become sole shareholder through the conversion of around 20% of its equity into new contracts with the team’s minority shareholders.
McLaren Group announce ‘full recapitalisation’ deal
Sky News’ report added that McLaren Racing has its own external shareholders, with that subsidiary area of the business overseeing their Formula 1, IndyCar, Extreme E and Formula E teams.
Mumtalakat had already owned an estimated 60% stake in McLaren Group, according to Reuters, and this recapitalisation is set to strengthen that position – though the announcement did not specifically state what proportion of the company it now owns.
Paul Walsh, McLaren Group Executive Chairman, said: “Completing the recapitalisation is a significant step in the ongoing transformation of the Group and provides a solid platform from which to grow our product offering and brand presence.”
H.E. Shaikh Abdulla bin Khalifa Al Khalifa, Chief Executive Officer of Bahrain Mumtalakat Holding Company, the majority shareholder of the Group, said: “Today’s announcement is testament to the diligent steps that have been taken in what is a comprehensive and long-term plan with our partners to deliver an optimal governance structure as the Group continues to design and deliver the world’s most innovative and exhilarating supercars.”
PlanetF1.com reached out to McLaren Group and McLaren Racing for comment, but had not received a response at time of publication.
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