Asian IPO best Formula One exit for CVC - Ecclestone

Ecclestone said it had been suggested to him that CVC's best exit route would be a Singapore listing rather than a trade sale, The Telegraph reported. He sees this as a direct result of the sport's growing appeal in Asia, with races in Singapore, Abu Dhabi, South Korea and India added in the last four years.

Earlier this year, CVC exited Samsonite through a $1.25 billion IPO in Hong Kong.

CVC is majority owner of the Formula One Group, having staged a $1.7 billion leveraged buyout in late 2005. Its interest is held through Alpha Prema, a company in which Ecclestone's family trust has an unspecified minority stake.

The private equity firm's investment was made through its fourth fund, a $7.2 billion vehicle raised in 2005. Based on the typical PE holding period of 3-5 years, it has been suggested that CVC is looking at exit options. Last year the firm reportedly conducted a strategic review that considered a potential trade sale, IPO or debt refinancing package.

There were several attempts to list Formula One Group on the London Stock Exchange in the late 1990s, but the European Commission barred the transactions on anti-competition grounds.

Ecclestone was in court two weeks ago testifying in case against a German banker accused of accepting a $44 million bribe from the Formula One chief in return for smoothing over CVC's acquisition. The banker maintains that the payout was a legitimate consultancy fee while Ecclestone claims he paid the sum because the banker was threatening to expose him to the tax authorities.

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• Topics
• Exits
• Media
• Southeast Asia
• IPO
• CVC Capital Partners
• TMT
• Exit
• Singapore