McLaren to sell a part of its stake in the F1 team to bolster financial strength, which suffered a huge impact due to the Coronavirus lockdown.
According to a report by the Autocar, McLaren is set to sell a minority stake of its F1 team to solve the financial issues faced by the car company amidst the pandemic.
Whereas, there have been reports stemming out that the company can sell a part of automotive, but there has been no confirmation about, and as of now only a part of the Racing division is up for grabs.
The Racing division encompasses the McLaren F1 team, which made headlines after Lando Norris fetched a podium position for them in the first race of the 2020 season.
McLaren’s bondholders and board are believed to have given the go-ahead to explore offers of interest in this last week. a McLaren spokesman said to Autocar: “We are considering the option of additional investors in the Racing business.”
McLaren shareholders give thumbs-up
Despite Bank of Baharain fuelling £150 million into the team last week to battle the financial crunch, the shareholders have now given a positive nod for this decision in order to secure a stable financial condition.
Before the sanction of the loan, the British company was in a huge crisis due to the financial struggles caused by the pandemic throughout the world.
Adding further, a clash between McLaren’s shareholders and some of its bondholders as to the long-term goals for its Automotive, Racing, and Applied divisions complicated the situation even more.
McLaren announced that it was cutting 1200 jobs – around a quarter of its workforce – in May as part of a cost-cutting scheme, with the vast majority coming from the Automotive division, but the firm was highly profitable prior to the pandemic.
When will McLaren announce the sale
Although no timeline has been guaranteed by McLaren over the potential sale of the division, it has been affirmed that talks are already well advanced, with more than one potential investor interested in the opportunity to buy into the team.
Nevertheless, how the new investor will affect the future course of McLaren in F1, it will definitely be interesting to witness.