Liberty Media raises $1.55bn to support F1 takeover

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Liberty Media has raised $1.55 billion to support its planned takeover of Formula 1, set to be completed in the early part of 2017.

Liberty announced back in September that it had agreed a deal to become the majority shareholder in F1, taking over from CVC in a deal worth over $8 billion.

Liberty has already completed the first part of the takeover, buying 18.7% of the shares in a cash deal, and announced on Thursday that it had raised $1.55bn in third party investment to support the buyout.

“This is a significant step in Liberty Media’s transformative acquisition of Formula 1 and is further confirmation that the future of the sport is bright,” Formula 1 chairman Chase Carey said.

Liberty president and CEO Greg Maffei added: “We are excited that this impressive list of investors will participate in the acquisition of Formula 1.

“This group shares our enthusiasm for the sport and our belief in the opportunity to develop and grow it for the benefit of the fans, teams, sponsors and our shareholders.

“We look forward to closing the transaction in early 2017.”

“Following the completion of the Formula 1 acquisition and the issuance of shares to the Third Party Investors, the Third Party Investors in the aggregate will own approximately 26% of the Formula One Group’s equity,” part of the statement from Liberty reads.

“The Selling Shareholders will own approximately 39% of the Formula One Group’s equity and will have board representation at Formula 1 to support Liberty Media in continuing to develop the full potential of the sport. In addition, a CVC representative will be joining the Liberty Media Board of Directors.”

Liberty shareholders are set to meet in January to vote on plans for the acquisition of F1, with the deal also remaining subject to clearance by the necessary competition authorities in bodies, as well as requiring approval from the FIA.