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CVC to sanction sale of Lehman shares

23 October 2012

F1 rights holder CVC Capital Partners has agreed to some of the shares still held by Lehman Brothers being sold off to an outside party as it continues to ponder floating the sport on the stock market.

According to Sky News, the Teachers' Retirement System of Texas (TRS) will buy a fifth of the shares still held by Lehman Brothers, which is in the process of selling off its remaining assets following its collapse in 2008. The deal is expected to realise $200m, but requires the consent of CVC, thanks to a clause in all shareholder agreements that calls for the company to approve all share sales. Lehman's 15 per cent stake is valued at around $1bn.



Although any potential flotation of F1 - which had initially been planned for one of the stock markets in the Far East at about this time - will not now take place until 2013 at the earliest, CVC has been busy divesting itself of some of its interest in the sport, selling a $1.6bn stake - around 20 per cent of its original holding - to investment company BlackRock, asset manager Waddell & Reed and Norges Bank Investment Management.

It then cut its interest further, to around 35 per cent, after agreeing another deal with US asset management company Waddell & Reed, which returned, alone, for a second slice of the pie, worth $500m, increasing its stake to 20.9 per cent.

TRS is the largest public retirement system in Texas 'in both membership and assets', and has net assets totalling around $101bn.


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