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Saudi PIF Buys into McLaren as Part of 550 Mln Pound Equity Raise

McLaren said PIF and Ares were providing 400 million of new capital, in the form of preference shares and equity warrants.
McLaren said PIF and Ares were providing 400 million of new capital, in the form of preference shares and equity warrants.
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Saudi PIF Buys into McLaren as Part of 550 Mln Pound Equity Raise

McLaren said PIF and Ares were providing 400 million of new capital, in the form of preference shares and equity warrants.
McLaren said PIF and Ares were providing 400 million of new capital, in the form of preference shares and equity warrants.

The McLaren Group announced a 550-million-pound ($758 million) equity investment on Friday with much of it coming from Saudi Arabia’s Public Investment Fund (PIF) and global investment firm Ares Management.

McLaren Group includes the British supercar maker as well as McLaren Racing, which competes in Formula One and IndyCar in the United States and is also entering the Extreme E off-road electric series next year.

McLaren said PIF and Ares were providing 400 million of new capital, in the form of preference shares and equity warrants.

The rest will come from existing shareholders as convertible preference shares, allowing for repayment of a loan received in June last year from the National Bank of Bahrain.

Bahrain’s Mumtalakat sovereign investment fund is McLaren’s majority shareholder with a 62.55% stake according to its website.

“Following the strategic investment into Racing that we secured last year, this successful equity raise is a key element of our comprehensive financial strategy to support the Group’s sustainable growth plans,” said McLaren Group’s executive chairman Paul Walsh.

“With these strong foundations now in place, we are well positioned to achieve our ambitions as a global luxury supercar and elite motorsport business, with Automotive as McLaren’s core profit driver.”

McLaren had a 300-million-pound equity injection from existing shareholders in March 2020 and last April completed a 170 million pound sale and leaseback deal on its Woking headquarters.

US-based investment group MSP Sports Capital also acquired a significant minority stake in McLaren Racing last December in a deal that brought in 185 million pounds and eased pressure from the COVID-19 pandemic.

Automotive revenues in the first quarter of this year were 170.5 million pounds, a rise of 145% on the same pandemic-affected period in 2020.

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US Coast Guard Says Hurricane May Shut Oil Ports

Vehicles are carried by ferry across Aransas Pass as Hurricane Beryl moves closer to the Texas coast, Saturday, July 6, 2024, in Port Aransas, Texas. (AP)
Vehicles are carried by ferry across Aransas Pass as Hurricane Beryl moves closer to the Texas coast, Saturday, July 6, 2024, in Port Aransas, Texas. (AP)
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US Coast Guard Says Hurricane May Shut Oil Ports

Vehicles are carried by ferry across Aransas Pass as Hurricane Beryl moves closer to the Texas coast, Saturday, July 6, 2024, in Port Aransas, Texas. (AP)
Vehicles are carried by ferry across Aransas Pass as Hurricane Beryl moves closer to the Texas coast, Saturday, July 6, 2024, in Port Aransas, Texas. (AP)

The US Coast Guard warned of possible Texas port closures from Corpus Christi to Houston and began restricting vessel traffic because of Tropical Storm Beryl, which is expected to become a hurricane before making landfall by Monday morning at Port Lavaca.

Port closures could bring to a temporary halt shipments of crude oil to refineries and motor fuels from those plants.

Port condition "Yankee" was set by the Coast Guard captain of the port of Corpus Christi on Saturday afternoon, restricting vessel movement in ports from Matagorda Bay, 101 miles (163 km) southwest of Houston, to the US-Mexico border.

Citgo Petroleum Corp was cutting production at its 165,000 barrel-per-day Corpus Christi, Texas, refinery on Saturday ahead of the approach of Beryl to the Texas coast.

Citgo plans to keep the Corpus Christi refinery running at minimum production as the storm moves up the coast toward a projected landfall at Port Lavaca, a pipeline hub.

Oil producer Shell Plc completed the evacuation of workers from its Perdido production platform in the US-regulated Gulf of Mexico ahead of the approach of the storm, the company said on Friday night.

Production on Perdido was shut prior to the evacuations. Shell said it also evacuated workers from the Whale platform, which is due to start production later this year.

Gibson Energy, which operates a large oil terminal in Corpus Christi, said operations were continuing, but it would take further steps depending on the forecast.

The storm was moving on Saturday with maximum sustained winds near 60 mph (95 kmh), the National Hurricane Center said.

The latest forecasts would put Corpus Christi on the dry side of the storm where the lowest winds and least rain could be expected. But Beryl could bring gale-force winds to the port, which is why the Coast Guard restricts traffic or shuts the port.

Most of the northern Gulf's offshore oil and gas production is east of Beryl's forecast track.

US Gulf of Mexico offshore production of about 1.8 million barrels per day accounts for about 14% of total US crude output, according to the US Energy Information Administration. Any impact on supplies could push up prices of US oil and offshore crude grades.

Oil major Chevron Corp, among the biggest US offshore producers, said on Friday that production from its operated assets remained normal. But it evacuated nonessential personnel from some of its Gulf of Mexico facilities.

Murphy Oil Corp said it has not shut in production or evacuated personnel, and continues to monitor the storm.