Saudi wealth fund PIF invests in British carmaker Mclaren

Buys a total of $550mln preference shares along with Ares

  
The McLaren P15 Senna is seen during the 88th International Motor Show at Palexpo in Geneva, Switzerland, March 6, 2018.

The McLaren P15 Senna is seen during the 88th International Motor Show at Palexpo in Geneva, Switzerland, March 6, 2018.

REUTERS/Denis Balibouse

Saudi Arabia's Public Investment Fund (PIF) and global alternative investment manager Ares Management Corporation are investing a total of £400 million ($550 million) in the form of preference shares in McLaren Group, the car maker said last week.

Existing shareholders, including Bahrain sovereign fund Mumtalakat, as well as new private investors, will invest an additional £150 million in the group in the form of convertible preference shares. The investment will allow the car maker to repay a loan it took in June 2020 from the National Bank of Bahrain, the company said.

Mumtalakat owns 62.55 percent of Mclaren Group, according to the fund’s website.

Paul Walsh, McLaren group executive chairman, said: “With these strong foundations now in place, we are well positioned to achieve our ambitions as a global luxury supercar and elite motorsport business, with Automotive as McLaren’s core profit driver.”

McLaren Group includes the supercar maker as well as McLaren Racing, which competes in Formula One and IndyCar in the United States.

Saudi PIF, which manages $400 billion in assets and plans to double its assets to over $1 trillion by 2025, is building a portfolio of international investments while also investing in domestic companies.

(Writing by Brinda Darasha; editing by Seban Scaria)

brinda.darasha@refinitiv.com

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