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Saudi Arabia’s sovereign wealth fund is in advanced talks to acquire a stake in McLaren Group as part of a fresh shake-up at the British supercar manufacturer and Formula One (F1) team-owner.

Sky News has learnt that the Saudi Public Investment Fund (PIF) is to participate in a £550m equity-raise which could be unveiled by McLaren within days.

Banking sources said the deal would include £400m of new capital from PIF and Ares Management, a major global investment firm, with £150m being injected into the company by McLaren’s existing shareholders – who include Mumtalakat, the sovereign investment fund of Bahrain.

The equity-raise was still being finalised on Friday and could still be delayed, the sources cautioned.

If completed, however, it would represent a major vote of confidence in McLaren’s strategy under the leadership of Paul Walsh, the former Diageo chief who joined last year as executive chairman.

The Woking-based company endured a torrid start to the pandemic as it sought a government loan to shore up its balance sheet.

It was also forced into a restructuring of its workforce which saw hundreds of jobs axed.

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Sales of its luxury road-cars have, however, rebounded strongly in recent months, while its racing fortunes have also continued to recover.

The Saudis’ acquisition of a minority stake in McLaren Group could pave the way for a series of commercial tie-ups involving the company and the oil-rich Gulf state, one analyst suggested on Thursday evening.

The PIF has also been part of a consortium attempting to buy Newcastle United Football Club from the retail tycoon Mike Ashley – a role which has attracted intense scrutiny from the Premier League and triggered a formal arbitration process that is expected to be resolved this month.

The Saudi fund has been a big investor in technology companies, in part through the giant Vision Fund led by Japan’s SoftBank, and also through individual companies such as the electric vehicle start-up Lucid Motors, which it listed in New York earlier this year.

Its experience with Lucid could be of benefit to McLaren as it develops more hybrid and electric cars such as its Artura model.

Ares Management is regarded as a blue-chip provider of capital to companies around the world, and has an existing relationship with McLaren, according to insiders.

The equity-raise will allay any lingering questions about the strength of McLaren’s balance sheet and will take the total funding raised by the group since Mr Walsh’s arrival to well over £1bn.

That figure comprises a £300m equity injection in March 2020, a £170m sale-and-leaseback of its spectacular Surrey headquarters and a £185m windfall from the sale of a separate stake in McLaren Racing.

McLaren also secured a £150m loan from the National Bank of Bahrain, reflecting its close ties to the Gulf state, last year.

The sale of a stake in McLaren Racing, which comprises its F1 team and INDYCAR Championship outfit, came during a revival in its on-track fortunes after years in the doldrums.

Lando Norris, one of its F1 drivers, sits in fourth place in the drivers’ championship, with team-mate Daniel Ricciardo lying in eighth.

The team, which is overseen by McLaren Racing chief executive Zak Brown, occupies third spot in the constructors’ championship behind Red Bull and Mercedes.

As well as its racing arm, the group consists of McLaren Automotive, which makes luxury road cars and which was highly profitable prior to the COVID-19 crisis; and McLaren Applied Technologies, which generates revenue from sales to corporate customers.

Founded in 1963 by Bruce McLaren, the car marque is one of the most famous names in British motorsport.

During half a century of competing in F1, it has won the constructors’ championship eight times, while its drivers have included the likes of Mika Hakkinen, Lewis Hamilton, Alain Prost and Ayrton Senna.

In total, the team has won 180 Grands Prix, three Indianopolis 500s and the Le Mans 24 Hours on its debut.

This weekend, it will compete in the British Grand Prix at Silverstone.

McLaren’s on-track operations account for roughly 20% of the group’s annual revenues.

It has sponsorship deals with companies including Darktrace, the cybersecurity software provider, Dell Technologies, the computing giant, and – as of this week – Stanley Black & Decker, the tool manufacturer.

McLaren is a major British exporter, directly employing about 3000 people and supporting thousands of jobs across the UK supply chain.

The company saw its separate divisions reunited following the departure in 2017 of Ron Dennis, the veteran McLaren boss who had steered its F1 team through the most successful period in its history.

He became one of Britain’s best-known businessmen, expanding McLaren’s technology ventures into a wide range of other industries through lucrative commercial partnerships.

Mr Dennis offloaded his stake in a £275m deal following a bitter dispute with fellow shareholders.

He had presented to McLaren’s board a £1.65bn takeover bid from a consortium of Chinese investors, but did not attract support for it from boardroom colleagues.

HSBC and Goldman Sachs are advising on the latest equity-raise.

McLaren did not respond to a request for comment on Friday morning.

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Post Office inquiry: Former complaints handler executive says she never ‘knowingly’ did anything wrong

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Post Office inquiry: Former complaints handler executive says she never 'knowingly' did anything wrong

A former top Post Office executive has told the Horizon scandal inquiry she never “knowingly” did anything wrong and did not remember a 2010 email saying that cash balances in sub-postmasters’ branch accounts could be remotely accessed.

Angela van den Bogerd, who held various roles over 35 years at the organisation, made the comments after opening her evidence on Thursday by saying she was “truly, truly sorry” for the “devastation” caused to wrongly convicted sub-postmasters.

Her roles at the Post Office included handling complaints about its Horizon software, which was provided by Japanese firm Fujitsu.

More than 700 Post Office managers were prosecuted between 1999 and 2015, after the system made it seem like money was missing from branches. At the time, the company insisted Horizon was robust.

Ms van der Bogerd, who was played by Coronation Street actress Katherine Kelly in the ITV drama Mr Bates Vs The Post Office, had previously not spoken publicly since a 2019 High Court case.

At the time, Judge Peter Fraser criticised her testimony and said she “did not give me frank evidence, and sought to obfuscate matters, and mislead me”.

Jason Beer KC, lead counsel to the inquiry, challenged Ms van den Bogerd’s opening statement, as he accused her of not saying sorry for her own role in the scandal.

Ms van den Bogerd, who resigned as the Post Office’s business improvement director in 2020, said she regretted missing significant documents and apologised for “not getting to the answer more quickly”.

She said: “But with the evidence I had and the parameters of my role at the time, I did the best I could to the best of my ability.”

Ms van den Bogerd added: “I didn’t knowingly do anything wrong and I would never knowingly do anything wrong.”

Read more on this story:
Review ordered into another Post Office IT system

Scandal victim demands jail for those who denied her justice
Leaked Post Office recordings revealed

The inquiry heard that Ms van den Bogerd was sent an email in December 2010 informing her Fujitsu could remotely amend cash balances in branch accounts via Horizon.

She told the inquiry she had no memory of it and only became aware of the issue in a January 2011 email.

The inquiry was shown a transcript of a meeting that same month between her and sub-postmistress Rachpal Athwal, who was sacked after being wrongly accused of stealing £710 before being reinstated.

In the meeting, Ms van den Bogerd said Horizon could not be accessed remotely by anyone from the Post Office, without mentioning that Fujitsu could, the inquiry heard.

Mr Beer asked: “Are you saying that what you said overall there is accurate?”

Ms van den Bogerd replied: “So that is accurate. I go on to talk later about Fujitsu, I believe”. Mr Beer said it was inaccurate because she had not given the full picture.

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Scandal ‘tip of the iceberg’

The inquiry also heard that, prior to a High Court case in 2019, Ms van den Bogerd made a witness statement in 2018 in which she said the first she knew of the possibility of inserting transactions into the system remotely was in the year or so before.

Mr Beer told the inquiry: “That was false.”

She replied: “Well, at the time I didn’t think it was.”

Pressed further on the issue, she said the messaging on remote access was “constantly changing” and that colleagues had been “very strong” that such access was “impossible”.

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‘I have had breakdowns’

Ms van den Bogerd was also asked about an October 2014 email she and other senior staff were sent by Post Office media officer Melanie Corfield, which discussed what the response should be if anyone asked about remote access to Horizon.

The email said: “Our current line if we are asked about remote access potentially being used to change branch data/transactions is simply: ‘This is not and never has been possible’.”

Mr Beer said: “You knew that was false from multiple sources by then, by now, didn’t you?”

Ms van den Bogerd appeared flustered, before replying: “Clearly I was aware of that and just didn’t pick this up… it didn’t register with me at the time, but obviously from what we’ve discussed then this was incorrect terms of reference of a flow of information, yes.”

She added she was “certainly not trying to cover up… it wasn’t just me, there were other people party to the same information”.

Meanwhile, earlier in the hearing, the former executive said she agreed with Mr Beer that using words such as “exception” or “anomaly” to describe computer bugs had been an “attempt to control the narrative”.

The inquiry continues.

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Post Office inquiry: Former complaints handler executive says she never ‘knowingly’ did anything wrong

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Post Office inquiry: Former complaints handler executive says she never 'knowingly' did anything wrong

A former top Post Office executive has told the inquiry into the Horizon scandal that she never “knowingly” did anything wrong.

Angela van den Bogerd, who held various roles over 35 years at the organisation, made the comment after opening her evidence on Thursday by saying she was “truly, truly sorry” for the “devastation” caused to wrongly convicted sub-postmasters.

Her roles at the Post Office included handling complaints about its Horizon software, which was provided by Japanese firm Fujitsu.

More than 700 Post Office managers were prosecuted between 1999 and 2015, after the system made it seem like money was missing from branches. At the time, the company insisted Horizon was robust.

Ms van der Bogerd, who was played by Coronation Street actress Katherine Kelly in the ITV drama Mr Bates Vs The Post Office, had previously not spoken publicly since a 2019 High Court case.

At the time, Judge Peter Fraser criticised her testimony and said she “did not give me frank evidence, and sought to obfuscate matters, and mislead me”.

Jason Beer KC, lead counsel to the inquiry, challenged Ms van den Bogerd’s opening statement, as he accused her of not saying sorry for her own role in the scandal.

Ms van den Bogerd, who resigned as the Post Office’s business improvement director in 2020, said she regretted missing significant documents and apologised for “not getting to the answer more quickly”.

She said: “But with the evidence I had and the parameters of my role at the time, I did the best I could to the best of my ability.”

Ms van den Bogerd added: “I didn’t knowingly do anything wrong and I would never knowingly do anything wrong.”

Read more on this story:
Review ordered into another Post Office IT system

Scandal victim demands jail for those who denied her justice
Leaked Post Office recordings revealed

The inquiry heard that Ms van den Bogerd was sent an email in December 2010 informing her Fujitsu could remotely amend cash balances in branch accounts via Horizon.

She told the inquiry she had no memory of it and only became aware of the issue in a January 2011 email.

The inquiry was shown a transcript of a meeting that same month between her and sub-postmistress Rachpal Athwal, who was sacked after being wrongly accused of stealing £710 before being reinstated.

In the meeting, Ms van den Bogerd said Horizon could not be accessed remotely by anyone from the Post Office, without mentioning that Fujitsu could, the inquiry heard.

Mr Beer asked: “Are you saying that what you said overall there is accurate?”

Ms van den Bogerd replied: “So that is accurate. I go on to talk later about Fujitsu, I believe”. Mr Beer said it was inaccurate because she had not given the full picture.

Please use Chrome browser for a more accessible video player

Scandal ‘tip of the iceberg’

The inquiry also heard that, prior to a High Court case in 2019, Ms van den Bogerd made a witness statement in 2018 in which she said the first she knew of the possibility of inserting transactions into the system remotely was in the year or so before.

Mr Beer told the inquiry: “That was false.”

She replied: “Well, at the time I didn’t think it was.”

Pressed further on the issue, she said the messaging on remote access was “constantly changing” and that colleagues had been “very strong” that such access was “impossible”.

Please use Chrome browser for a more accessible video player

‘I have had breakdowns’

Ms van den Bogerd was also asked about an October 2014 email she and other senior staff were sent by Post Office media officer Melanie Corfield, which discussed what the response should be if anyone asked about remote access to Horizon.

The email said: “Our current line if we are asked about remote access potentially being used to change branch data/transactions is simply: ‘This is not and never has been possible’.”

Mr Beer said: “You knew that was false from multiple sources by then, by now, didn’t you?”

Ms van den Bogerd appeared flustered, before replying: “Clearly I was aware of that and just didn’t pick this up… it didn’t register with me at the time, but obviously from what we’ve discussed then this was incorrect terms of reference of a flow of information, yes.”

She added she was “certainly not trying to cover up… it wasn’t just me, there were other people party to the same information”.

Meanwhile, earlier in the hearing, the former executive said she agreed with Mr Beer that using words such as “exception” or “anomaly” to describe computer bugs had been an “attempt to control the narrative”.

The inquiry continues.

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Unions vow to fight ‘rejection’ of plan to save Tata Steel jobs

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Unions vow to fight 'rejection' of plan to save Tata Steel jobs

Unions have warned of a bitter fight ahead, saying their plans to avert thousands of job losses at Tata Steel have been rejected by the company.

Tata had announced in January a consultation on cutting up to 2,800 jobs in the UK, the majority of them at the country’s biggest steelworks in Port Talbot, South Wales.

It followed confirmation that the Indian-owned firm wanted to close down the blast furnaces at the plant and replace them with electric arc furnaces under a plan to reduce emissions and costs.

GMB, Unite and Community union representatives met Tata counterparts at a London hotel to discuss the way forward on Thursday morning.

But the GMB said Tata informed them that the blast furnaces would be closed by the end of September, describing the decision as an “unwelcome but not expected slap in the face”.

Tata Steel was yet to comment.

It has consistently argued that its £1.25bn investment would secure the future of UK steelmaking.

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“It would protect the majority of jobs, reduce the UK’s carbon emissions by five million tonnes a year and could kickstart a green industrial revolution in South Wales,” a spokesperson said.

However, its operations are now widely expected to face strike action.

Members of Community and the GMB are being balloted on whether to walk out over the plans.

Unite members have already voted in favour of industrial action.

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Why is green steel such a big issue?

The unions had urged Tata to abandon the government-supported switch to so-called green steel by signing up to an alternative plan that would raise productivity and protect jobs across the supply chain.

They argued that Tat’s proposals would rid the UK economy of its last remaining ‘virgin’ steelmaking facility and commit thousands of jobs to the scrap heap for no reason.

Community general secretary Roy Rickhuss said: “It’s incredibly disappointing that Tata have chosen to reject the multi-union plan, which is an ambitious and viable alternative to their destructive bad deal for steel.

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Port Talbot: Community ‘smashed to pieces’

“We do not accept the company’s assertion our plan was too expensive – in fact, it would have returned the company to profits, and the additional capital expenditure needed to make it a reality could have been funded by an additional £450m from the government – a drop in the water compared to what other European countries are investing in their domestic steel industries.

“Tata have made their decision, and our members will decide on our collective response.

“Tata made a proposal to negotiate a package with the unions to give us firm assurances on jobs and future investment, and we will consult our members on how we proceed

“We want to make one thing absolutely clear to the company: this isn’t over – not by a long shot. We will never stop fighting for our jobs, our industry, and our proud steel communities.”

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