Private equity firm CVC Capital has reportedly raised US$1.6bn by selling a stake in Formula One to three investors, including BlackRock ahead of the motor racing company's US$3bn initial public offering (IPO) in Singapore.
The pre-IPO deal cuts CVC's stake in Formula One to about 40% from 63.4%, the reports said. The deal gives Formula One an enterprise value of ~US$9.1bn, including US$7.2bn of equity and US$1.9bn of debt, according to reports.
The two other investors are asset manager Waddell & Reed and Norway's Norges Bank Investment Management, the asset management unit of the Norwegian central bank, known as Norges Bank.
Formula One on Tuesday starts pre-marketing for its Singapore IPO, which is expected to debut later in June.
The company is seeking to raise at least US$2.5bn while the IPO is set to be priced before the end of June.
Goldman Sachs, Morgan Stanley and UBS were hired to lead the IPO.
Spain's Banco Santander, Singapore's DBS Group and Malaysia's CIMB will act as joint bookrunners on the deal.