Connect with us

Published

on

Bahrain’s sovereign wealth fund has completed a deal to take full ownership of McLaren Group, one of the most revered names in British manufacturing, after years of negotiations to put the company on a stable long-term footing.

Sky News understands that McLaren will announce later on Friday that the recapitalisation of the supercar manufacturer and Formula One team shareholder has been concluded.

The deal will pave the way for McLaren to pursue a technology partnership with a global automotive giant that could also involve Mumtalakat offloading a minority stake in the Woking-based company.

In a statement issued to Sky News, Paul Walsh, McLaren’s executive chairman, said the deal would strengthen the company’s governance and ownership structure.

“This will further enable us to focus on delivering our long-term business plan, including investment in new products and technologies, whilst continuing to explore potential technical partnerships with industry partners,” Mr Walsh, the former Diageo chief executive, said.

Mumtalakat said the completion of the transaction “crystallizes the next phase of the company’s trajectory of growing its leadership position in the luxury super car and motorsports industries”.

“This reorganisation and new simplified structure positions McLaren for success and opens up strategic avenues, which include exploring new partnerships to enhance the company’s growth over the coming years.”

McLaren, whose road car models include the Artura Spider, P1 and Senna, announced on Friday morning that Zak Brown, the boss of its racing division, had signed a new long-term contract.

As part of the recapitalisation deal, McLaren’s remaining minority shareholders have agreed to convert their equity into warrant-like instruments.

The new contracts will have the economic rights to benefit from a future ‘liquidity event’ such as an initial public offering or sale of McLaren, but would not be classed as shares.

McLaren Racing, the division which directly houses the F1 and other racing operations, has its own external shareholders following a deal struck during the pandemic.

The Woking-based company’s convoluted capital structure has acted as a deterrent to global automotive groups’ ability to structure a long-term partnership with it in recent years.

Simplifying that structure is likely to pave the way for a technology partnership with an automotive original equipment manufacturer (OEM) in the coming years as McLaren transitions towards becoming a hybrid and electric vehicle company.

Read more from business:
New Brexit border post could be demolished
Retail sales flatline as wet weather dampens demand
US justice department sues Apple

Bankers have talked up the prospect of a McLaren public listing for years, but its repeated need to tap its private shareholders for funding, and the supply chain challenges which have hindered its recovery, mean that an IPO is still likely to be several years away.

During the COVID-19 pandemic, the company was forced into a far-reaching restructuring that saw hundreds of jobs axed and substantial sums raised in equity and debt to repair its balance sheet.

McLaren has also undertaken a series of corporate transactions since the start of the pandemic, when it sought a government loan – a request which was rebuffed by ministers.

Mr Walsh has overseen a £170m sale-and-leaseback of its spectacular Surrey headquarters.

In 2021, it also sold McLaren Applied Technologies, which generates revenue from sales to corporate customers.

Founded in 1963 by Bruce McLaren, the group’s name is among the most famous 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 Indianapolis 500s and the Le Mans 24 Hours on its debut.

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.

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

Continue Reading

Business

Vodafone internet services down for thousands of users

Published

on

By

Vodafone internet services down for thousands of users

Tens of thousands of Vodafone users are reporting problems with their internet

The outages began on Monday afternoon, according to the monitoring website DownDetector, which reported more than 130,000 issues with Vodafone connections.

A spokeswoman for the company said: “We are aware of a major issue on our network currently affecting broadband, 4G and 5G services.

“We appreciate our customers’ patience while we work to resolve this as soon as possible.”

The company has more than 18 million UK customers, with nearly 700,000 of those using Vodafone’s home broadband connection.

Vodafone users vented their frustration on social media.

“It’s like Vodafone has just been wiped off the earth. Not a single thing works,” said one X user.

More on Vodafone

Vodafone users were shown an error message when trying to access the internet provider's app
Image:
Vodafone users were shown an error message when trying to access the internet provider’s app

The Vodafone app also appeared to be down for users, with the company’s website briefly going down too.

The ‘network status checker’ on the website was also down, and when Sky News tried to test the customer helpline, it did not ring.

“There’s Vodafone down and then there’s Vodafone wiped off the face of the f***ing planet,” posted another X user.

Read more from Sky News:
Gaza deal latest: Drones reveal devastation
Madagascar president says coup under way

Jake Moore, global cybersecurity advisor at ESET, said the outage shows how reliant we are on modern infrastructure like mobile networks.

“Outages will always naturally raise early suspicions of a potential cyber incident, though current evidence points more towards an internal network failure than a confirmed attack,” said Mr Moore.

“The sudden outage, combined with the inability to access customer service lines, mirrors classic symptoms of a distributed denial-of-service (DDoS) attack, where attackers overwhelm the network so the site or systems collapse.

“However, malicious or not, this once again highlights our heavy reliance on digital infrastructure, especially in an age where we increasingly depend on mobile networks for everything,” he said.

“Ultimately, resilience is essential, whether the cause is a direct cyberattack, a supply chain issue or a critical internal error.”

Continue Reading

Business

Lloyds estimates £1.95bn hit from motor finance scandal

Published

on

By

Lloyds estimates £1.95bn hit from motor finance scandal

Lloyds Banking Group has set aside a further £800m to cover estimated costs associated with the car finance mis-selling scandal.

The bank said the sum took its total provision to £1.95bn.

It had been assessing the impact since the Financial Conduct Authority (FCA) revealed last week it was consulting on a compensation scheme, with up to 14.2 million car finance agreements potentially eligible for payouts.

The regulator had previously found that many lenders failed to disclose commission paid to brokers, which could have led to customers paying more than they should have between April 2007 and November 2024.

Money latest: How much a private investigator costs

Eligible customers could receive an average of £700 each under the proposals.

Lloyds said on Monday that it would be contributing to the consultation to argue a number of points.

More from Money

It said: “The Group remains committed to ensuring customers receive appropriate redress where they suffered loss, however the Group does not believe that the proposed redress methodology outlined in the consultation document reflects the actual loss to the customer. Nor does it meet the objective of ensuring that consumers are compensated proportionately and reasonably where harm has been demonstrated.

“In addition, the approach to unfairness in the redress scheme does not align with the legal clarity provided by the recent Supreme Court judgment in Johnson, in which unfairness was assessed on a fact specific basis and against a non-exhaustive list of multiple factors. The Group will make representations to the FCA accordingly.”

Please use Chrome browser for a more accessible video player

Car finance: ‘Don’t use a claims firm – here’s why’

Shares in Lloyds, which fell last week when the bank warned of a potential “material” increase in its provisions, gained more than 0.5% on Monday.

The estimated compensation figure came in below the sum some financial analysts had predicted.

The shares remain more 50% up in the year to date.

Another listed lender exposed to car loan mis-selling is also expected to raise the amount it has set aside.

Close Brothers, which has a £165m provision currently, saw its shares tumble 7% when it admitted an increase was likely once its analysis of the compensation consultation documents was completed.

Car finance makes up approximately a quarter of its total loan book.

Continue Reading

Business

Farming community responds to rumours of an inheritance tax U-turn

Published

on

By

Farming community responds to rumours of an inheritance tax U-turn

The budget may still be more than six weeks away, but rumours of U-turns and changes are already in full swing.

Over the last few days, there have been multiple reports that those inside Whitehall are considering tweaks to the controversial inheritance tax (IHT) reforms on farms announced this time last year.

Plans to introduce a 20% tax on estates worth more than £1m drew tens of thousands to protest in London, many fearing huge tax bills that would force small farms to sell up for good.

Now there are reports the tax threshold could be increased from £1m to £5m (£10m for a married couple) – a shift that would remove smaller farms from being liable to pay.

Please use Chrome browser for a more accessible video player

From February: Farmers continue tax protest

Senior figures in farming have long believed a rise could be the solution to save the smaller farms and it would satisfy most.

However under the proposals, the 50% relief on IHT would be removed for farms above the new threshold.

That means bigger farms, responsible for producing a large amount of produce in our supermarkets, could bear the brunt of the tax burden with the Treasury potentially increasing revenues.

More on Farming

Two senior farming figures told me today that while a threshold increase is welcome, it does nothing to solve an “insolvable” problem.

Read more: What’s the beef with farmers’ inheritance tax?

Big farms have more land to sell, but then they become smaller farms and either produce less, or even divide up, to avoid the tax entirely.

Richard Cornock runs a small dairy farm in south Gloucestershire, which has been in his family since 1822.

Richard Cornock plans to pass his farm on to his son
Image:
Richard Cornock plans to pass his farm on to his son


He hopes to pass it on to his son Harry, who is now 14 and training to become a farm manager.

“I’ve been under so much stress like most farmers worrying about this tax,” he said. “And I really hope they do push the boundaries on the thresholds, because the million pounds they propose at the moment is ridiculous.

“It’s been on my mind the whole time to be honest. I even looked into getting life insurance to insure my life and I can’t get it because I had a heart condition. And that was one way I thought I might be able to cover my kids…”

We paused our chat as he was too upset to continue – an illustration of the stress farmers like him have been under over the last 12 months.

Tens of thousands from the farming community took part in protests in London. Pic: Reuters
Image:
Tens of thousands from the farming community took part in protests in London. Pic: Reuters

The government says it won’t comment on “speculation” about any possible changes, but it has previously defended the IHT reform, saying most estates would not pay and that those who will be liable can spread payments over a decade.

Labour is under pressure to do something to appease the angry farmers, a rural vote that turned from the Conservatives at the last election.

I ask Richard whether any tweak or row back on IHT will restore faith in Labour?

“The damage has been done,” he says.

Continue Reading

Trending