A Chinese company is lining up a bid to take over Formula One, according to a report by Sky News.
China Media Capital (CMC) is heading a group Chinese companies looking to invest $1.5bn in F1, as part of a consortium being put together by American businessman Stephen Ross, owner of the Miami Dolphins NFL team.
The consortium is understood to be planning to contact F1’s current largest shareholder, CVC Capital Partners, to request a 90-day exclusivity period to go through due diligence. F1 is currently valued at $8.5bn. Other share holders include Bernie Ecclestone, and various wealth management funds.
Sky News quotes unnamed sources saying Ross himself wants invest $500m in F1, via his RSE Ventures company, and German media firm Constantin Medien is seeking a similar stake.
Another $2bn in equity would have to found from other investors with the remainder in debt for the consortium to complete a takeover.
Ecclestone, F1’s commercial rights holder, indicated earlier this month that a large stake in F1 could be sold by the end of this year. According to Sky News, the consortium is keen for Ecclestone to stay on to oversee the sport, but a new team would take over the commercial side of the business to better exploit media and sponsorship rights.
By Only Motors