Liberty Media has announced that $400 million worth of shares in Formula 1 will be set aside for teams to purchase following its acquisition of the sport.
Liberty announced in September that it had agreed to purchase F1 in an $8 billion deal, with final approval being given by the series’ governing body, the FIA, earlier this week. The takeover is set to be completed by the end of January.
Liberty issued a statement on Thursday confirming that it has allocated $400 million worth of shares to be bought by the teams racing in F1, with the idea being part of its mission statement after its initial offer was accepted.
“Liberty Media Corporation announced today that it intends to issue cash convertible senior notes in a private offering,” the statement reads.
“The notes will be convertible into cash in an amount determined by reference to the trading price of shares of Series C Liberty Media common stock (“LMCK”).
“Liberty expects to use the net proceeds of the offering to fund an increase to the cash consideration payable to the selling shareholders (the “Selling Shareholders”) of Formula 1 (“F1″) by $400 million and retain in treasury the approximately 19 million shares that would otherwise have been issuable to the Selling Shareholders based on the per share purchase price of $21.26. These LMCK shares will be reserved by Liberty for issuance to the F1 teams at a per share purchase price of $21.26.”
“We think it’s important to offer the teams the chance to invest in F1 and further align our interests,” Liberty president and CEO Greg Maffei said.
“We look forward to working with the teams to increase the appeal of this iconic sport and enhance the F1 business.”
F1 chairman Chase Carey added: “Several of the teams have expressed interest in investing and we have already begun productive discussions to make the sport more competitive and even more exciting.”