CVC pulls in $865m dividend from Formula One investment ahead of potential IPO


formula one racing carCVC Capital Partners has been paid an $865m dividend from its investment in the Formula One motor racing brand following a series of lucrative media deals, it has emerged.

The huge dividend includes a $355m payout awarded following a refinancing after the company delayed plans to float on the Singapore stock market last year, according to the UK’s Telegraph newspaper.

Reports in March quoted Formula One head Bernie Ecclestone as saying it could revive the Singapore IPO later this year, although a 2014 listing looks more likely.

Formula One hoped to raise up to $3bn by listing on the Singapore exchange before the end of June 2012, but dropped its plans to lodge a prospectus due to market instability.

CVC previously dropped its ownership in the business to about 35 per cent, down from the 63.4 per cent it controlled before the initial IPO announcement early that year.

US asset management company Waddell & Reed increased its stake to 20.9 per cent after paying $500m for a further 14.4 per cent of the company, valuing it at $9.1bn.

CVC sold a $1.6bn stake in the company towards the end of May 2012 as pre-marketing for the IPO was announced.

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