Economy News Shares

McLaren funding round, Saudi Arabia enters the capital


The British manufacturer of luxury sports cars McLaren has seen its sales rise sharply, with 520 cars sold in the first quarter, compared with 307 a year earlier at the start of the pandemic.

As the result of the pandemic, the new funds will enable both the group’s business and sports divisions to grow, according to a statement.

The company, known for its Formula One team, announced Friday that it had raised 550 million pounds ($757 million) from investors including Saudi Arabia.

Together, the Saudi sovereign wealth fund Public Investment Fund (PIF) and US hedge fund Ares Management will invest 400 million pounds.

Furthermore, existing shareholders, such as Mumtalakat, the sovereign wealth fund of Bahrain, and some new private investors will contribute 150 million pounds.

Following the short-term measures put in place last summer in response to the global pandemic, McLaren is taking important steps to ensure the long-term stability of the business,” says Paul Walsh, executive chairman.

The carmaker, which is based in Surrey, south of London, has 3,000 employees worldwide, down from 1,200 last year due to the impact of the health crisis on its business.

There was a halt in production and sales of the brand’s products due to cancellation of sporting events.

With this new investment, the total amount collected over the course of the pandemic exceeds one billion pounds.

Fundraising activities
McLaren raised funds several times, including 300 million from its shareholders, 170 million through the sale and lease of its headquarters, and 185 million through the sale of a minority stake in its sports arm.

In the first quarter of this year, 520 cars were sold, compared with 307 a year earlier at the start of the pandemic.

Over the period, its turnover increased by 68.5% to 184.3 million pounds, which reduced its losses.

McLaren also announced last August that it would stop manufacturing gasoline models by 2030 and switch to electric cars instead.

For MetaNews.


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