Since 2006, private equity firm CVC has been the largest shareholder in Formula One motor racing business and has reduced its stake from 63% to 35%.
The new deal has assisted CVC to get rid from pressure, as it stopped business plan in Singapore due to uncertainity of the market, as reported by Reuters.
In a statement issued by CVC, it said, "Several funds managed by Waddell & Reed Investment Management Company and Ivy Investment Management Company have today agreed to invest a further $500m in a private placement in Formula 1 at $9.1bn enterprise value."
Prior to this, CVC had reduced its stake to 42% in a $1.6bn deal with Waddell & Reed, BlackRock and Norway’s Norges Bank Investment Management.
The firm explained that Formula One is a series of 20 high-speed motor races orgainsed around the world which attracts a television audience of over 500 million.
During the current session, the equity firm expects that its revenues will to exceed $2bn for the first time.
