McLaren sells historic cars to raise cash for Artura upgrades

Europe

McLaren has recently sold some of its prized heritage car collection to Bahrain’s sovereign wealth fund Mumtalakat Holding to raise capital to upgrade its Artura supercar.

McLaren was forced to seek an injection of funds after identifying “certain technical upgrades” on the Artura plug-in hybrid car that triggered delivery delays, McLaren said earlier this week during its third-quarter earnings.

Its main shareholder — with Mumtalakat owning a near 60 percent stake — agreed to support the company with an additional 100 million pounds ($123 million), the company said.

A McLaren spokesman confirmed the sale of some heritage vehicles to the company’s main shareholder in return for the cash infusion, without elaborating on the details of the cars sold.

McLaren’s heritage vehicles include 54 rare Formula 1 racing cars and F1 supercars, according to its 2021 annual report. The same report states that the company sells cars from its collection from time to time.

“We are in active talks with all shareholders regarding a recapitalization of the group,” McLaren said on the call, indicating the additional funds will not be enough. It’s also continuing talks for potential partnerships.

McLaren reported a loss of 203 million pounds in the nine months through September, compared with a 69-million-pound loss a year ago.
Liquidity at the end of the third quarter declined to 87 million pounds, down from 171 million pounds.

The British marque has sought emergency financing multiple times over the past few years from shareholders amid long delays in the launch of the Artura.

The latest round of fundraising comes just months after its shareholders — which also include investment firm Ares Management Corporation and Saudi Arabia’s Public Investment Fund — gave 125 million pounds through convertible preference shares.

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