A group of investors, including BlackRock Inc. (BLK), has purchased a stake in motor-racing franchise Formula One Group ahead of its initial public offering, Reuters reported Tuesday on its website, citing people familiar with the matter.
BlackRock, along with two other investors, purchased the stake from private equity firm CVC Capital Partners Ltd. for $1.6 billion, which set a benchmark valuation of at least $7 billion for Formula One. The transaction reduces CVC's stake in Formula One to about 40% from 63.4%.
Along with BlackRock, asset manager Waddell & Reed Financial Inc. (WDR) and Norges Bank Investment Management, the asset management unit of Norway's central bank, participated in the deal. Formula One shares are expected to make their debut in June.
BlackRock declined comment to Reuters and Norges Bank and Waddell & Reed were not available for comment.
Full story at: www.reuters.com/article/2012/05/22/formulaone-ipo-idUSL4E8GL38V20120522
-Dow Jones Newswires; 212-416-2900