CVC Capital Sells Off Formula 1 Stakes


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The move comes a month ahead of Formula 1's stock market flotation planned in Singapore.

CVC Capital has sold a $1.6 billion stake in Formula 1 to investors ahead of the sport's planned $3 billion IPO.

Formula 1's stock market flotation is planned to go ahead in Singapore next month, and sources have told the Reutersnews agency that CVC has sold a stake of around 20 per cent of the sport to three investors including BlackRock.

As a result of the pre-IPO deal, CVC's stake is believed to have been cut to around 40 per cent.

BlackRock is an American multinational investment corporation as well as the world's largest asset manager.

The move gives Formula 1 an enterprise value of about $9.1 billion.

"We view this (pre-IPO deal) as a validation of the company's valuation," a source toldReuters about the deal.

Source:
CVC Capital sells F1 stake - News - Autocar India
 
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Re: CVC Capital Sells Off Formula-1 Stakes

Don't expect to see a Formula One IPO until later this year at the earliest. F1 CEO Bernie Ecclestone says his company is delaying a public offering due to an uncertain market.

The motorsports organization has been working toward a $3 billion IPO in Singapore that was originally scheduled to go live next month, and marketing for the IPO has already begun. But with Facebook's disappointing showing last month and the tech company's stock continuing to fall in value, Ecclestone says there's no rush to go public.

F1 is offering a unique IPO, wherein the company's shares and debt will be sold alongside one another. Ecclestone didn't offer a firm date on when we can expect to see the his company go public beyond saying, "it's going to be this year." The 81-year-old executive was otherwise guarded about a date, indicating only that F1 will simply wait until it's the right time.
 
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Bernie Ecclestone

We never really know what goes on at the top of the executive ladder. We often speculate that people are not honest, and more often than not, speculations turn out to be real.


Apparently, F1 CEO, Bernie Ecclestone had bribed former German banker, Gerhard Gribkowsky, in exchange for a favorable outcome when BayernLB (Bavarian state bank) sold its stake in F1 to CVC Capital Partners, back in 2006, with the latter gaining a controlling share in the series.

Gerhard Gribkowsky received a colossal amount of cash, $44- (€35-) million, from Bernie Ecclestone, while he was working as a top exec for BayernLB. The payments were made in order to ensure that Mr. Gribkowsky would not share details regarding the racing series internal financial information with British authorities, which could have prompted a deeper tax investigation.

But why did such an influential man stoop so low? Well, if Mr. Gribkowsky had alerted the UK authorities, then F1 (and Ecclestone) would have had to pay a mind-boggling $3.1- (€2.4-) billion in taxes. If convicted, Bernie Ecclestone could serve up to 10 years in prison.
 

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Re: CVC Capital Sells Off Formula-1 Stakes

Gerhard Gribkowsky was on Wednesday sentenced to jail by a Munich court.
The guilty verdict could have serious implications for F1 chief executive Bernie Ecclestone, who admits to paying millions to the former BayernLB banker.
Gribkowsky was sentenced to eight and a half years in jail for crimes including bribery, for the $44 million received from Ecclestone.
In closing arguments earlier Wednesday, the German prosecutors described Ecclestone as an "accomplice", not a victim of extortion as claimed by the 81-year-old Briton.


Read more: Banker sentenced to jail for F1 bribery - Ecclestone likely to be charged
 
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Re: CVC Capital Sells Off Formula-1 Stakes

A 41-year-old man in Britain faces jail after pleading guilty to trying to blackmail formula one boss Bernie Ecclestone.
The Telegraph reported that the man, who works as a dental technician, phoned the 81-year-old billionaire several times, claiming he had kidnapped his daughter Tamara.
Ecclestone called the police after the man demanded 200,000 British pounds for her release.
"Amateurish it might have been, but it was a targeted offence," said the prosecutor. "The family is vulnerable and Mr Ecclestone took it seriously."
The Southwark Crown Court judge reportedly said the offence will lead "inevitably ... to a significant and substantial prison sentence".
The man will be sentenced in September.


Read more: Man faces jail after Tamara Ecclestone blackmail hoax
 
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Bernie Ecclestone has not been seen at Hockenheim so far, raising suggestions he is afraid of arrest.

German newspapers - including FT Deutschland, Suddeutsche Zeitung and Munchner Merkur - say corrupt former F1 banker Gerhard Gribkowsky has this week spent no fewer than eight hours in conversation with Munich prosecutors.

The subject? A possible indictment against F1's chief executive.
Munich prosecutors on Friday declined to comment.
"We do not disclose details at each step of an investigation," said a spokesman.

Ecclestone, however, insists he is not staying away from Germany this weekend for fear of ending the day in custody, also charged with corruption.
"I am going. I will be there on Saturday," the Briton is quoted by the Hamburger Abendblatt.

But is he afraid of arrest?

"I have nothing to do with the case," Ecclestone insisted.

Major F1 sponsors, however, are not so convinced. The Times reports that companies including UPS, Allianz and Petronas "have examined details" of the Gribkowsky situation.

"Big companies are very wary of being involved in anything that could damage their reputations," said a source.

Read more: Ecclestone absent from German Grand Prix, is he afraid of arrest?
 
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Bernie Ecclestone's familiar paddock motor home with its blacked-out windows was in the Hockenheim paddock, but the F1 chief executive did not show.
The Hamburger Abendblatt newspaper said it is "not known" if the 81-year-old feared being arrested for corruption by German police.
What is known is that, even until the eleventh hour of the weekend's German grand prix, the diminutive Briton was widely expected to be in the country.
For example, Nurburgring officials Jorg Lindner and Kai Richter had travelled to Hockenheim specifically to meet with Ecclestone to discuss their circuit's crisis.
"They waited and waited, but Bernie did not come," a correspondent for Suddeutsche newspaper said.
Jailed F1 banker Gerhard Gribkowsky's lawyer Daniel Amelung said it is obvious Ecclestone got "cold feet" about risking German custody by making the trip from London.


Read more: Ecclestone's motor home in Germany, Ecclestone not
 

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Ecclestone gets married in Switzerland[lol]

81-year-old Ecclestone has used the August break to marry for the third time.
British newspapers the Daily Mail and the Sun report that F1's famous chief executive married 35-year-old Brazilian Fabiana Flosi, who formerly worked on the marketing of the Brazilian grand prix, at his ski chalet in Gstaad, Switzerland.

The reports said Ecclestone's daughters Tamara, 28, and Petra, 24, and their mother Slavica, were in Los Angeles at the time.
 

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Ecclestone pushing to dump Formula 1 turbo V6 plans

Formula One boss Bernie Ecclestone is unhappy with his series' proposed engine change. SPEED is reporting that Ecclestone believes the introduction of the turbocharged V6 mill should be postponed or even dropped altogether.

While one may think the leading concern for the Ecclestone are the budgets tied to developing the new engines, his issue with the V6 is reportedly far more simple than that. No, Ecclestone has a problem with the way the turbocharged V6 powerplants sound.

The SPEED report notes Ecclestone's reaction: "I listened to the noise of the engines in Maranello the other day, the new engine and the old engine, and even (Ferrari President) Luca di Montezemolo said it sounded terrible."

As superficial of a qualm Ecclestone might have with the engine note, that whine of a high-revving V8 has become an integral part of the identify of F1 – it may be imprudent to meddle with with such an important part of the brand.

FIA president Jean Todt had previously stated that there will not be another delay in the rollout of the new powerplant, but Australian Grand Prix president and Ecclestone-ally Ron Walker says "The circuits will all support Bernie in his quest to keep the same engine, because it will mean great savings in the cost burden of running the sport."

Given that we are just 18 months from the start of the 2014 season, we will be anxious to see what the final decision is on engine formula – and how soon it is made. Ferrari, Mercedes-Benz, and Renault are not waiting around to find out what Bernie's decision is, as they are gradually converting their dynos over to V6 use and will continue to develop the new engine in the meantime.

Ecclestone pushing to dump Formula 1 turbo V6 plans
 
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Ecclestone awaits ‘amusing’ $100m trial appearance

Bernie Ecclestone thinks a forthcoming $100m trial will be “amusing”.

The F1 chief executive and others, including convicted bribe recipient Gerhard Gribkowsky, are being sued by the sport’s former co-owners Constantin Medien over the sale of F1′s rights to CVC some years ago.

Constantin claims the manipulation of the sale cost it more than $100 million.

Ecclestone, who may also be prosecuted by German authorities for allegedly bribing Gribkowsky, told the Telegraph he is prepared to appear at the Constantin Medien case to testify.

“I wish they would bring it forward,” he told leading F1 business journalist Christian Sylt. “It’s going to be amusing. Sure I am looking forward to it.”

Sylt said Ecclestone has been approached with an offer to settle.

“All this is about finding a way to get money,” Ecclestone, 82, confirmed. “It is as simple as that.

“(Constantin shareholder) Dieter Hahn had some intermediary, who is a friend of ours, to talk to me about ‘you know you should settle, you don’t want to go to court’. I’m not settling,” he insisted.

“The judge will settle the case. I can’t see that it could go any other way than in my favour.”

Ecclestone awaits ‘amusing’ $100m trial appearance
 
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