AGIT8D
17-05-2011, 08:19 AM
http://theage.drive.com.au/motor-news/for-sale-v8-supercars-series-240m-20110131-1aa5g.html
Majority stake in Australia’s premier motor racing championship up for grabs as series targets brands beyond Ford and Holden.
V8 Supercar bosses predict the sale of Australia's premier motorsport category will encourage other makes to join Holden and Ford on the grid.
A majority stake in V8Supercars is available to the right buyer at a forecast price up to $240 million.
The 'for sale' sign goes up as the category develops new 'Car of the Future' technical regulations for 2013, which open the championship to new brands.
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Private equity firms, sports promotion companies and media organisations have all been touted as potential investors. A finalised deal is expected by July.
"I think it (a successful sale) sends a strong message about our sustainability to car manufacturers who are considering coming into V8Supercars," said Tim Miles, the former team owner and V8Supercar board member managing the sale. "An investor who can write an X hundred million cheque for 50 per cent of the business is obviously a serious entity.
"A car manufacturer will see this has a long-term future like Formula One and MotoGP, unlike other forms of motorsport that have come and gone. So it gives a manufacturer confidence about the longevity of it, as far as considering a proposal from [another championship] and us. It gives us some strength."
V8Supercars executives have been out among car distributors in Australia touting the new rules. While there have been admissions of some interest from some, including Nissan, BMW, Lexus and Mercedes-Benz, none has signed on as yet.
One of the reasons cited for the share sale is the investment V8 teams have to make to develop and build their new Car of the Future racers and the inventory of parts needed to keep them running.
"When we go the revised car in 2013 there is going to be the need to replace all your cars and to change the spares that go with it," explained V8Supercar board member Roland Dane, also owner of multi-Bathurst and championship-winning Team Vodafone.
"The [Car of the Future] base car will cost less than it does for most teams today, but you will still have to change your inventory. So there will be a fairly significant and concentrated capital expenditure required that is normally spread over a three-year cycle."
Currently, V8Supercars is 75 per cent owned by 17 team owners and 25 per cent by the sports and entertainment promoter SEL.
SEL's entire share is up for sale and the team owners are willing to dilute their share to between 50 and 25 per cent, effectively handing a new partner control of the category.
V8Supercars expects to raise between $160m and $240 million from the sale, which means each team owner could – in theory – collect as much as $6 million per car they race.
V8Supercars claimed a profit of $32 million in 2010 on a turn-over of $135 million.
Outspoken V8Supercar chairman Tony Cochrane, who is an SEL board member, will retain his V8 position, buy a shareholding and leave SEL under the new arrangement.
SEL chairman James Erskine is understood to be a reluctant seller, as he alone accounts for 48 per cent of the SEL share. Under pressure from the teams, he has agreed to sell-out for the right deal.
While SEL is a largely passive shareholder, V8Supercars wants a new partner to inject funding and provide expertise for a new expansion planned into the Asian region. The Cochrane-developed blueprint envisions 11 races in Australia, six in Asia and one in New Zealand.
http://www.speedcafe.com.au/2011/05/08/v8-supercars-sold-to-sydney-investment-firm/
Sydney-based private equity firm Archer Capital is in the final stages of an agreement to purchase V8 Supercars for more than $300 million, with the deal set to be concluded within a week.
After more than 12 months of preparation and negotiation, it is believed that Archer has won out in a final two-horse race with the World Sports Group.
While all financial agreements are not available, it is believed that REC owners (license owners) will receive approximately $4 million each as part of the buy-out while retaining 40 percent of the business.
Importantly, Tony Cochrane will be retained as the company’s chairman and public face and part of his arrangement will be part ownership.
Given the suggested figures, Sports and Entertainment Limited will receive more than $A75 million for its 25 percent stake – split between the current owners Cochrane, James Erskin, David Coe and Basil Scaffidi.
The V8 Supercars deal was brokered by Tim Miles, who is a former part owner of Tasman Motorsport and the head of mid-market house Miles Pty Ltd.
Miles is the expert in that field and has been working around the clock with V8 Supercars hierarchy to get all the elements lined up.
Speedcafe.com spoke to Miles who said that the deal is close to being finalised.
“My team has been locked away all this weekend and will continue to be locked away for the next couple of days with Archer and all of their advisors to get us to the pointy end,” Miles told Speedcafe.com.
“The view is to have it finalised by next weekend.”
The focus of the new structure will be to increase the value through a new TV rights deal, and increasing the yield from events.
Archer Capital is a Sydney-based, Australian-owned private equity firm, specialising in management buyouts and leveraged buyouts.
Some of the companies that Archer Capital has been associated with include John West Foods, Sulo, Emeco, Repco and the Signature Security Group.
Archer Capital current owns or part-owns Ausfuel, MYOB (Mind your own business), Cellarmasters Group, Rebel Group, iNova Pharmaceuticals and West Australian dairy business DairyWest.
Archer’s advisory bank of choice is JPMorgan and it has been speculated they are also majorly involved in the financing of the final deal.
Final clarity on how the new structure will work, how business will be separated from the sport and who has the final say on key issues will be revealed in coming weeks.
http://wwos.ninemsn.com.au/article.aspx?id=8250050
V8 Supercars are set to confirm the reported $300 million sale of 60 per cent of the competition's shareholding to a Sydney-based private equity firm.
The motorsport championship has called a media conference in Sydney at 11.30am AEST at which details of the sale are expected to be announced.
It's believed the terms of the deal will see shareholders Sports and Entertainment Limited (SEL), which owns 25 per cent of the championship, and the teams, which own 75 per cent, selling a majority share to Archer Capital.
Each team will reportedly received $4 million up front from the deal while the teams will retain a 40 per cent share of the business.
Current boss Tony Cochrane will be retained as chairman as the championship enters negotiations for the next round of television rights.
The current TV deal with the Seven Network ends at end of 2012.
Discuss.
Good or bad for the sport, what do you think the future holds? Or will the series remain the same.. There should be an update live in about 15 minutes officially explaining WTF is going on.
Majority stake in Australia’s premier motor racing championship up for grabs as series targets brands beyond Ford and Holden.
V8 Supercar bosses predict the sale of Australia's premier motorsport category will encourage other makes to join Holden and Ford on the grid.
A majority stake in V8Supercars is available to the right buyer at a forecast price up to $240 million.
The 'for sale' sign goes up as the category develops new 'Car of the Future' technical regulations for 2013, which open the championship to new brands.
Advertisement: Story continues below
Private equity firms, sports promotion companies and media organisations have all been touted as potential investors. A finalised deal is expected by July.
"I think it (a successful sale) sends a strong message about our sustainability to car manufacturers who are considering coming into V8Supercars," said Tim Miles, the former team owner and V8Supercar board member managing the sale. "An investor who can write an X hundred million cheque for 50 per cent of the business is obviously a serious entity.
"A car manufacturer will see this has a long-term future like Formula One and MotoGP, unlike other forms of motorsport that have come and gone. So it gives a manufacturer confidence about the longevity of it, as far as considering a proposal from [another championship] and us. It gives us some strength."
V8Supercars executives have been out among car distributors in Australia touting the new rules. While there have been admissions of some interest from some, including Nissan, BMW, Lexus and Mercedes-Benz, none has signed on as yet.
One of the reasons cited for the share sale is the investment V8 teams have to make to develop and build their new Car of the Future racers and the inventory of parts needed to keep them running.
"When we go the revised car in 2013 there is going to be the need to replace all your cars and to change the spares that go with it," explained V8Supercar board member Roland Dane, also owner of multi-Bathurst and championship-winning Team Vodafone.
"The [Car of the Future] base car will cost less than it does for most teams today, but you will still have to change your inventory. So there will be a fairly significant and concentrated capital expenditure required that is normally spread over a three-year cycle."
Currently, V8Supercars is 75 per cent owned by 17 team owners and 25 per cent by the sports and entertainment promoter SEL.
SEL's entire share is up for sale and the team owners are willing to dilute their share to between 50 and 25 per cent, effectively handing a new partner control of the category.
V8Supercars expects to raise between $160m and $240 million from the sale, which means each team owner could – in theory – collect as much as $6 million per car they race.
V8Supercars claimed a profit of $32 million in 2010 on a turn-over of $135 million.
Outspoken V8Supercar chairman Tony Cochrane, who is an SEL board member, will retain his V8 position, buy a shareholding and leave SEL under the new arrangement.
SEL chairman James Erskine is understood to be a reluctant seller, as he alone accounts for 48 per cent of the SEL share. Under pressure from the teams, he has agreed to sell-out for the right deal.
While SEL is a largely passive shareholder, V8Supercars wants a new partner to inject funding and provide expertise for a new expansion planned into the Asian region. The Cochrane-developed blueprint envisions 11 races in Australia, six in Asia and one in New Zealand.
http://www.speedcafe.com.au/2011/05/08/v8-supercars-sold-to-sydney-investment-firm/
Sydney-based private equity firm Archer Capital is in the final stages of an agreement to purchase V8 Supercars for more than $300 million, with the deal set to be concluded within a week.
After more than 12 months of preparation and negotiation, it is believed that Archer has won out in a final two-horse race with the World Sports Group.
While all financial agreements are not available, it is believed that REC owners (license owners) will receive approximately $4 million each as part of the buy-out while retaining 40 percent of the business.
Importantly, Tony Cochrane will be retained as the company’s chairman and public face and part of his arrangement will be part ownership.
Given the suggested figures, Sports and Entertainment Limited will receive more than $A75 million for its 25 percent stake – split between the current owners Cochrane, James Erskin, David Coe and Basil Scaffidi.
The V8 Supercars deal was brokered by Tim Miles, who is a former part owner of Tasman Motorsport and the head of mid-market house Miles Pty Ltd.
Miles is the expert in that field and has been working around the clock with V8 Supercars hierarchy to get all the elements lined up.
Speedcafe.com spoke to Miles who said that the deal is close to being finalised.
“My team has been locked away all this weekend and will continue to be locked away for the next couple of days with Archer and all of their advisors to get us to the pointy end,” Miles told Speedcafe.com.
“The view is to have it finalised by next weekend.”
The focus of the new structure will be to increase the value through a new TV rights deal, and increasing the yield from events.
Archer Capital is a Sydney-based, Australian-owned private equity firm, specialising in management buyouts and leveraged buyouts.
Some of the companies that Archer Capital has been associated with include John West Foods, Sulo, Emeco, Repco and the Signature Security Group.
Archer Capital current owns or part-owns Ausfuel, MYOB (Mind your own business), Cellarmasters Group, Rebel Group, iNova Pharmaceuticals and West Australian dairy business DairyWest.
Archer’s advisory bank of choice is JPMorgan and it has been speculated they are also majorly involved in the financing of the final deal.
Final clarity on how the new structure will work, how business will be separated from the sport and who has the final say on key issues will be revealed in coming weeks.
http://wwos.ninemsn.com.au/article.aspx?id=8250050
V8 Supercars are set to confirm the reported $300 million sale of 60 per cent of the competition's shareholding to a Sydney-based private equity firm.
The motorsport championship has called a media conference in Sydney at 11.30am AEST at which details of the sale are expected to be announced.
It's believed the terms of the deal will see shareholders Sports and Entertainment Limited (SEL), which owns 25 per cent of the championship, and the teams, which own 75 per cent, selling a majority share to Archer Capital.
Each team will reportedly received $4 million up front from the deal while the teams will retain a 40 per cent share of the business.
Current boss Tony Cochrane will be retained as chairman as the championship enters negotiations for the next round of television rights.
The current TV deal with the Seven Network ends at end of 2012.
Discuss.
Good or bad for the sport, what do you think the future holds? Or will the series remain the same.. There should be an update live in about 15 minutes officially explaining WTF is going on.