Bahrain tightens grip on McLaren with purchase of Saudi stake

Bahrain tightens grip on McLaren with purchase of Saudi stake

Bahrain’s sovereign wealth fund has tightened its control on McLaren, buying the shares owned by Saudi Arabia and investment manager Ares, paving the way to recapitalise the supercar maker in the coming months.

Mumtalakat, which was already the controlling shareholder, said on Thursday it had bought up the preference shares owned by Riyadh’s Public Investment Fund and Ares. It did not disclose the financial terms of the deal.

The pair invested £400mn in July 2021 as part of McLaren’s long-running efforts to raise cash.

The deal simplifies the structure of the shareholder register, making it easier for the owners to issue new shares in the coming months. 

McLaren chief executive Michael Leiters, who joined from Ferrari last year, told the Financial Times last month that the planned recapitalisation would also lead to “simpler decision making” at the top of the company, which has previously been beset by differing opinions from its various shareholder groups.

Mumtalakat said it had “acquired the senior preference shareholders’ stakes in McLaren Group Limited, which is part of a proposed broader comprehensive restructuring of the group to achieve its long-term objectives”.

The lossmaking business, which competes with marques such as Lamborghini and Ferrari, is seeking to raise more funds in the coming