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McLaren sells classic cars to collect money to buy new supercars


McLaren Holdings Ltd. who was short on cash recently sold some of his prized car collection to the sovereign wealth fund Mumtalakat Holding Co. of Bahrain to raise capital.

Via:
Bloomberg

|
Update on:
December 2, 2022, 16:22 ONLY

McLaren F1 (USA TODAY Sports)
McLaren F1 race car (USA TODAY Sports)

The supercar maker was forced to seek a sum of money after it was determined that “some technical upgrade” on the Artura hybrid supercar had caused delivery delays. McLaren said earlier this week in its third-quarter earnings. Its main shareholder – with Mumtalakat owning almost 60 per cent of the shares – has agreed to back the company by an additional £100 million ($123 million), the company said.

Also read: McLaren has finally arrived in India

A McLaren spokesman confirmed the sale of some of the heritage vehicles to the company’s main shareholder in exchange for a cash infusion, without explaining the details of the cars sold.

According to the 2021 annual report, McLaren’s heritage vehicles include 54 Formula 1 racing cars and rare F1 supercars. The same report states that the company occasionally sells cars from its collection.

“We are in active negotiations with all shareholders regarding the recapitalization of the group,” McLaren said on the call, suggesting the additional amount would not be enough. They are also continuing to negotiate on potential partnerships.

McLaren reported a loss of £203m in the nine months to September, compared with a loss of £69m a year ago. Liquidity at the end of the third quarter fell to £87 million, down from £171 million.

The British brand has repeatedly sought emergency funding over the past few years from shareholders amid a lengthy delay in the launch of Artura. The latest round of fundraising comes just months after its shareholders – including investment firm Ares Management Corporation and Saudi Arabia’s Public Investment Fund – gave £125m via preferred shares. convert.

First published date: December 2, 2022, 16:22 pm IST

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