Report: Bahrain sovereign wealth fund set for McLaren takeover

Bahrain's sovereign wealth fund Mumtalakat has reportedly agreed adeal to take over full ownership of the McLaren Group - includingthe F1 team. According to Sky News , the Gulf state willeffectively become McLaren's sole owner in a deal that could beannounced as soon as this week. The deal would involve 20 per-centequity in McLaren being converted into new contracts, leaving theBahrain state as the group's sole shareholder. McLaren Racing hasits own external shareholders, with it a subsidiary area of thebusiness that covers their Formula 1, IndyCar, Extreme E andFormula E operations. This could pave the way for a technologypartnership with an original equipment manufacturer (OEM) in theautomotive sector, as McLaren transitions towards becoming a hybridand electric vehicle company. Mumtalakat already owned a 60per-cent stake in the McLaren Group, with shareholders approving afull recapitalisation this week. Paul Walsh, McLaren GroupExecutive Chairman, said: “Completing the recapitalisation is asignificant step in the ongoing transformation of the Group andprovides a solid platform from which to grow our product offeringand brand presence.” H.E. Shaikh Abdulla bin Khalifa Al Khalifa,Chief Executive Officer of Bahrain Mumtalakat Holding Company, themajority shareholder of the Group, said: “Today’s announcement istestament to the diligent steps that have been taken in what is acomprehensive and long-term plan with our partners to deliver anoptimal governance structure as the Group continues to design anddeliver the world’s most innovative and exhilarating supercars.”