Bahrain’s sovereign wealth fund Mumtalakat has acquired full ownership of luxury automaker McLaren Group, obtaining a majority stake in the McLaren F1 team.
McLaren hailed it as a “major milestone”.
Mumtalakat was already McLaren’s biggest shareholder. The deal includes a capital reorganisation in which all preference shares were converted into ordinary shares.
The recapitalisation will also introduce a simplified share structure, a streamlined governance process and expansion to new markets, according to Mumtalakat.
The announcement follows a period of deep financial uncertainty for the British company, which has recently suffered heavy losses. McLaren was hit heavily by the Covid pandemic, which resulted in reductions in car sales and the cancellation of sporting events. In 2020, McLaren underwent a major restructuring which included the loss of more than 1,000 jobs.
In the first nine months of 2023 alone, the automaker reported a pre-tax loss of £276m.
“We are delighted at Mumtalakat’s continued commitment to McLaren through this deal, which strengthens our ownership and governance structure,” said Paul Walsh, McLaren Group Executive Chairman.
“This will further enable us to focus on delivering our long-term business plan, including investment in new products and technologies, whilst continuing to explore potential technical partnerships with industry partners.”
Mumtalakat became an investor in McLaren Group since 2007, when it bought a 30% stake from founding shareholders Ron Dennis and Mansour Ojjeh. Over time it increased that stake to 60%, becoming a majority stakeholder in the business.
“Today’s announcement crystallizes the next phase of the company’s trajectory of growing its leadership position in the luxury supercar and motorsports industries,” said He Shaikh Abdulla bin Khalifa Al Khalifa, Chief Executive Officer of Mumtalakat, added: “
“This reorganisation and new simplified structure positions McLaren for success and opens up strategic avenues, which include exploring new partnerships to enhance the company’s growth over the coming years.”
The McLaren Group is headquartered in the UK. It is also an owner of McLaren Automotive, which over the past 14 years has become a major player in the market for prestige sportscars, which compete with models made by Ferrari and Porsche.
The group also has a majority stake in McLaren Racing, which owns the McLaren Formula 1 team and competes in the US IndyCar series, and the Formula E and Extreme E electric series.