Cvc Could Block Murdoch Bid For F1
Private equity firm CVC could end any hopes of a possible takeover of Formula One, because CVC has first refusal on any stakes offered for sale.
News Corporation’s James Murdoch has confirmed it has teamed up with Exor, an investment firm controlled by the Agnelli family, for a possible takeover bid of Formula One – by buying out the sport’s minority shareholders.
CVC owns 63.4% of Formula One’s parent company Delta Topco, and has confirmed it received a ‘friendly’ approach from James Murdoch, deputy chief operating officer of News Corp.
A statement from Murdoch said: ‘Over the coming weeks and months, Exor and News Corporation will approach potential minority partners and key stakeholders in the sport’.
However, the shareholders of Delta Topco are all bound by an agreement signed in 2006 when CVC refinanced the £1.75bn debt which it used to buy F1, which states that CVC has first refusal on any shareholders’ stakes if they decide to sell, and also gives the firm the right to veto the sale of any other stakes in Delta Topco.
Nick Clarry, CVC’s managing director, added: ‘The shareholders’ agreement gives us control in any event, as they cannot sell without first offering the shares to us and we must approve all and any transfers’.
