Bahraini fund hires bank to find buyer for McLaren stake

McLaren

Bahrain’s sovereign fund has hired bankers to find a potential buyer for its stake in the British carmaker McLaren Group, according to a UK media report.

Mumtalakat Holdings, which holds a 50 percent stake in McLaren, has hired JP Morgan following an order from King Hamad bin Isa Al Khalifa, The Sunday Times reported.

JP Morgan will help find a new “strategic partner” with expertise in making electric vehicles as McLaren shifts its focus towards an electrified future.

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Mumtalakat has instructed JP Morgan to approach potential Chinese buyers, with the new partner likely to take up minority stake before gradually increasing it.

Since 2007, the fund has maintained a substantial stake in McLaren. Following the Covid-19 pandemic in 2020, Mumtalakat invested £300 million ($384.60 million) emergency cash infusion to support the carmaker.

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It subsequently raised an additional £1 billion through various initiatives, such as the sale and leaseback of its Woking headquarters, a partial sale of the company’s heritage car collection and fundraising involving Saudi Arabia’s Public Investment Fund.

After two years, Mumtalakat acquired the remaining stake from the Saudis, cementing the fund’s control over the company.

A spokesman for McLaren did not deny the Times report and said the company was “open to partnership discussions and maintain regular dialogue with potential strategic technology partners and suppliers”.