SINGAPORE, April 10 CVC Capital Partners has set
a Friday deadline for banks hoping to play a role in Formula
One's Singapore IPO, sources told Reuters on Tuesday, in a sign
that the process for the roughly $1.5 billion IPO is formally
under way, with plans for a July listing.
Formula One chief Bernie Ecclestone told Reuters last month
that he had recommended Singapore as the best place to float the
motor racing business, seeking to tap Asian enthusiasm for
international sporting brands.
While a public listing of the world famous motor racing
series has long been expected, with news of the Singapore venue
breaking last month, the precise timing of the deal remained
unclear. Sources with direct knowledge of the matter said a
Friday deadline was set for banks to submit formal proposals to
the company, CVC and its advisers.
Top investment banks will be pushing hard to play a role in
underwriting the deal, not only for the fees involved but for
the prestige of being part of such a high profile offering.
A final decision on the investment banking mandates will be
made on or around April 24, one of the sources said, with the
aim of listing in July.
CVC, which owns 63.4 percent of F1, is looking to
list part of the business in Singapore, but would continue to
hold shares of Formula One, according to a previous Reuters
An Asia-based listing would help the company tap the
region's interest in international sporting brands.
Plans for a Formula One IPO were made more urgent by the
expiry this year of a confidential commercial agreement between
the rights holding company and the teams whose cars compete in
the 20-race series.
Media reports put a $10 billion value on the business, with
Goldman Sachs chosen as the main adviser on the deal. A minimum
15 percent float would make the deal worth $1.5 billion.
Bloomberg reported on Tuesday that the IPO could seek a 20
percent float worth $2 billion.
Formula One has yet to formally apply to the Singapore Stock
Exchange for its listing plans. CVC was not immediately
available for comment on Tuesday.