Saudi sovereign wealth fund, PIF, has recently divested its stake in McLaren and sold it to Bahrain.
Bahrain’s state investment fund, Mumtalakat, is set to purchase preference shares and warrants valued at £400 million ($510.48 million) in carmaker McLaren from Saudi Arabia’s Public Investment Fund (PIF) and Ares Management, according to a report by Sky News. The transaction does not involve injecting new capital into McLaren, as stated in the Sky News report. An official announcement from Mumtalakat regarding the deal is expected on Thursday. This purchase will further expand Mumtalakat’s majority stake in the McLaren group, encompassing the British supercar maker and McLaren Racing.
The acquisition of preference shares and warrants by Mumtalakat strengthens its existing majority stake in the McLaren group. This group encompasses McLaren Automotive, the renowned British supercar manufacturer, as well as McLaren Racing. The move by Bahrain’s state investment fund demonstrates its continued commitment to expanding its presence in the global automotive industry.
In July 2021, Ares Management, a global investment firm, and Saudi Arabia’s PIF played a significant role in an equity investment worth £550 million in the McLaren group. The involvement of these entities reflected their confidence in McLaren’s potential for growth and success. Furthermore, the transaction highlighted the strategic partnerships formed to support McLaren’s expansion plans. Notably, Mumtalakat’s CEO, Khalid Al Rumaihi, mentioned in June of the previous year that he anticipated McLaren’s potential initial public offering (IPO) within the next two to three years.
As news of Mumtalakat’s acquisition emerged, the sovereign wealth fund of Bahrain was unavailable for immediate comment. Ares Management, when approached for a statement, declined to comment on the matter. Both McLaren and the Saudi PIF did not provide immediate responses regarding the transaction. However, it is expected that more information will be made available as Mumtalakat unveils the details of the deal in its official announcement.
Mumtalakat’s purchase of the stake in McLaren represents a strategic investment aimed at securing a greater share in the growth and success of the renowned automotive brand. McLaren’s reputation for producing high-performance vehicles and its involvement in Formula 1 racing make it an attractive prospect for investors seeking opportunities in the automotive and motorsports sectors. By strengthening its ownership position in McLaren, Mumtalakat is aligning itself with McLaren’s vision for the future and positioning itself to benefit from the potential value appreciation of the McLaren group.
Bahrain’s Mumtalakat has established itself as a prominent player in the country’s thriving investment landscape. The sovereign wealth fund actively seeks opportunities to diversify its portfolio and expand its presence globally. With strategic investments in sectors such as automotive, Mumtalakat is contributing to Bahrain’s economic growth and positioning itself as a key player in the global investment community. The acquisition of a significant stake in McLaren further cements Bahrain’s commitment to nurturing and supporting innovative and successful businesses.
Bahrain’s Mumtalakat’s acquisition of a £400 million stake in McLaren from Saudi Arabia’s PIF and Ares Management underscores the country’s commitment to expanding its footprint in the automotive industry. This strategic investment not only strengthens Mumtalakat’s majority stake in the McLaren group but also aligns the sovereign wealth fund with McLaren’s growth trajectory. As Bahrain continues to foster a thriving investment landscape, partnerships like this contribute to the country’s economic diversification and its reputation as an attractive destination for global investors.
