F1 sells off 21 per cent stake for a cool BILLION ahead of expected flotation

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UPDATED:

18:12 GMT, 22 May 2012

Formula One's majority shareholders CVC Capital Partners have sold a 21 per cent stake in the sport, understood to be worth 1billion.

A trio of investment companies in BlackRock, Waddell & Reed and Norges Bank Investment Management have acquired just over a fifth of the business ahead of a planned share flotation.

Confirming the purchase, which sees CVC's stake in F1 reduced from 63 per cent to 42 per cent, managing partner Donald Mackenzie said: 'This is great news for Formula One and an important step in its development.

How much CVC's sale would value F1 at around 5billion in total

'CVC became the controlling shareholder of Formula One in 2006. Since that date we have supported the company and its management as they have grown the company with great success.

'The addition of these three highly regarded investors to our share register is validation of this success, and we look forward to working with our new partners over the coming years.'

The sale is understood to have occurred four months ago, however, CVC kept silent on the deal as they gear up for the flotation.

An initial public offering is likely to occur on the Singapore Stock Exchange, potentially next month, which would value F1 overall at around 5billion.