Bahrain widens grip on McLaren Group
McLaren Group shareholders have approved a “full recapitalisation” of the company under a deal with Bahrain’s sovereign wealth fund, it has been announced.
The Gulf state’s investment fund Mumtalakat, which already holds a 60 per cent stake in the company, said the deal would introduce a “simplified share structure and streamlined governance process,” offering the opportunity for expansion into new markets.
The announcement came after reports from Sky News that Bahrain is on the brink of taking full ownership of the supercar maker and Formula One team owner.
The agreement, which could be announced as soon as this week, would see 20 per cent of McLaren’s equity converted into new contracts, leaving the state of Bahrain as the group’s sole shareholder.
In June, Mumtalakat expanded its stake in McLaren, buying shares and warrants worth £400m from Saudi Arabia’s Public Investment Fund (PIF) and Ares Management. A source told Sky News the deal would underline the continued confidence and leadership of the state-run fund in driving McLaren’s turnaround.
The Woking-based luxury carmaker has struggled for cash in recent years amid supply chain disruption. Auditors warned in September last year it was at risk of collapse because of the global semiconductor crisis, which pummelled the entire automotive industry during the pandemic era.
Delivery delays of its next-generation Artura supercar have also hit the bottom line and an IPO is unlikely for several years at least.
In 2021, the company sold its Woking headquarters to the investment firm GNL in a £170m deal, although it will stay on as tenant for the next two decades as part of the agreement.
McLaren Group did not immediately respond to a City PM request for comment on the reports. The company’s executive chair, Paul Walsh, said the recapitalisation would provide a “solid platform from which to grow our product offering and brand presence.”