Saudi Arabian wealth fund takes McLaren stake in £550m raise
Saudi Arabia’s sovereign wealth fund has today taken a stake in iconic supercar maker McLaren through an equity raise.
Saudi Public Investment Fund (PIF) has taken part in a £550m raise likely to be unveiled within days, as was first reported by Sky News.
Along with investment firm Ares Management, PIF will put £400m into the Woking-based firm, which has been battered by the pandemic.
The remaining £150m will be raised through McLaren’s existing investors.
Paul Walsh, McLaren Group Executive Chairman said: “Building on the short-term measures that we put in place last summer in response to the global pandemic, McLaren has taken a number of significant steps to put the company on a stable footing for the long-term, with the close support of its advisors and existing shareholders.
“Following the strategic investment into Racing that we secured last year, this successful equity raise is a key element of our comprehensive financial strategy to support the Group’s sustainable growth plans.
Earlier this year it was revealed that the British brand was seeking to raise £500m to fix its balance sheet after the pandemic.
Sales at the auto firm fell 60 per cent last year, with the company making a £312m loss as a result. It was also forced to lay off a quarter of its staff last summer.
A successful raise would take the amount that McLaren has raised in the past year to over £1bn.
It gained £300m from a prior raise last March, and scooped £180m from the sale and leaseback of its Norman Foster-designed hq in April.
It also raised £185m from the sale of a separate stake in McLaren Racing.