FORUMula1.com - F1 Forum

[darwin dali]

ESPNF1:
Formula One's owners - private equity firm CVC Capital - has sold a $1.6 billion stake in the sport to three investors, according to reports.

Reuters is reporting that US-based asset managers Waddell and Reed, Blackrock and Norway's Norges Bank Investment Management have completed a deal ahead of the planned $3bn initial public offering of Formula One on the Singapore stock exchange. The flotation is expected to take place next month, and Finance Asia says that the pre-IPO deal gives Formula One an enterprise value of about $9.1bn.

The report claims that the deal has cut CVC's stake in Formula One from 63.4% down to around the 40% mark.

A source told Reuters: "We view this (pre-IPO deal) as a validation of the company's valuation."



So, who on here will get a share or two during the upcoming IPO?

[CookinFlat6]

I might look to short some shares on the IPO, like I did with Facebook

[darwin dali]

I might look to short some shares on the IPO, like I did with Facebook

The Facebook IPO was rather underwhelming - how did you do?

[CookinFlat6]

Very well thankyou. All this pre IPO deal stuff is to help support the IPO price, just like with Facebook, once they stop supporting their own prices with these tricks the market should slide.

This is why Facebook slid after IPO;



How much more profitable can F1 become, CVC are looking to also do a smash and grab before the realities of a double dip recession and slowing of growth in the far east hit home in my opinion

[Jabberwocky]

I did think that $100 a user was a bit optermistic from FB

[Jabberwocky]

However if I keep buying the odd F1 share eventually I will be Bernies apprentice.... then I will change my username to Darth Jabberwocky

[andrew]

....then I will change my username to Darth Jabberwocky

I've seen those films. They don't end well for anyone called Darth. Maybe not such a good investment afterall.

[Jabberwocky]

....then I will change my username to Darth Jabberwocky

I've seen those films. They don't end well for anyone called Darth. Maybe not such a good investment afterall.

but they have a lot of fun along the way

[LewEngBridewell]

Hmmm, I don't know much about this side of the sport. Is this a good, or a bad thing? Thoughts?

[Jabberwocky]

I think as long as Bernie stays in charge to us watchers it will not make much difference.

[andrew]

....then I will change my username to Darth Jabberwocky

I've seen those films. They don't end well for anyone called Darth. Maybe not such a good investment afterall.

but they have a lot of fun along the way

Oh without a doubt. Especially in the first ones.

[darwin dali]

ESPNF1: F1 might delay IPO - Ecclestone


Bernie Ecclestone has said Formula One's planned initial public offering on the Singapore stock exchange could be delayed while owners CVC Capital wait for the right moment.

Over recent months stories have gathered pace that CVC is planning a flotation of some of its shares in Singapore, but Ecclestone told CNN in Monaco that it would only do so when the market conditions are right.

"All that has ever been said is that [CVC managing partner Donald] Mackenzie said this would probably depend an awful lot on what the market is at the time and the market doesn't look too bright after that little bit of a problem with Facebook," he said, referring to drop in the value of the social networking website's shares since its IPO last Friday. "I think they [CVC] are going to wait and see," he added.

Ecclestone hinted that all the current teams have now agreed to sign up to remain in Formula One until at least 2020 - a crucial factor to ensure the value of the sport. There had been concerns that Mercedes were not happy with the proposed deal in the next Concorde Agreement but Ecclestone said he is confident they will agree.

"You'll have to wait to see if Mercedes have, but I'm confident everything with Mercedes will be fine," he said "I appreciate and support Mercedes more than anyone. They do a fantastic job for Formula One. They've done a good, good job and I really appreciate it. But the way the whole thing was constructed was on results and we couldn't falsify the results otherwise other people would complain."

On Friday Reuters confirmed that Nestle's Peter Brabeck had been appointed as Formula One's chairman. He also said that no decision had been made on a date for the IPO, while Mackenzie told Reuters: "It's certainly something we are going to do over the next 3-6 months but there is no set timetable."



And here we have another Swiss link in F1: Nestle, the world's largest food company founded and headquartered in Vevey, Switzerland.

[Jabberwocky]

Maybe the excitement from a 8 way title decider at the last grand prix, or maybe for a grand prix at an oil rich country where the rich get excited

[What's Burning?]

ESPNF1: Details of the next Concorde Agreement have emerged in the Guardian newspaper, which include a one-off windfall payment to encourage the teams to sign.

On Friday Ecclestone told CNN that the teams had agreed to sign up to Formula One until 2020, although Mercedes' exact position remains unclear. As an incentive the 12 outfits will share a payment of £115 million for agreeing to the deal, according the Guardian.

The report says that the annual prize fund will stay at 47.5% of F1's underlying profit, but that new bonuses mean an extra 7.5% will be shared between the top three teams of the past three years, plus 5% for Ferrari due to its historical status. Bernie Ecclestone told the newspaper: "The teams are going to get around $70m more."

There is also an option for the calendar to be extended beyond 20 races, which would provide a significant boost F1's revenues. "We have flexibility to go beyond 20 races," Ecclestone said. "We have got four or five places waiting to do something." The report said 22 or 23 races per season could become a reality.

Under the new agreement the teams can quit F1 if the underlying profits fall below $715m a year (they're currently at $1.17bn) and Ferrari can quit if control of the company changes and profits drop by 25% in the next two years.

Getting the teams to sign up to the Concorde Agreement is crucial if Formula One wants to go ahead with its plans to float on the Singapore stock exchange.

[darwin dali]

ESPNF1:

[...]
"With the way things are at the moment, people are reluctant to invest. Look at the markets. If people aren't buying stock on companies that have been on the markets for 20 years, why will they come and invest in a new one now?"

Although the final decision has to be made by the board, Ecclestone's comments make it highly unlikely the plans to go to the market later this month will be carried out.

"We'll wait until October or November when the Formula One season is over," Ecclestone said. "At the moment we just don't have time to do an investor roadshow."

Asked if the disappointing Facebook launch was another factor he said it was "obviously a problem" but added: "The price they put on it was ridiculous. How they ever got to that figure I'll never know."