McLaren, the Woking-based luxury carmaker, has secured an additional £30 million from its Bahraini owners, Mumtalakat, the Bahrainian sovereign wealth fund.
This injection of capital comes as McLaren strives to fortify its long-term stability amidst persistent financial challenges. Just two months ago, Mumtalakat injected £80 million into the company, further solidifying its position as McLaren’s largest shareholder.
Mumtalakat, which owns two-thirds of McLaren, has been a consistent source of financial support for the company as it grapples with cash issues linked to the ongoing semiconductor shortage exacerbated by the pandemic. The recent investment brings the total funds received by McLaren in the last twelve months to nearly £500 million.
To navigate its financial landscape, McLaren has enlisted the assistance of financial PR firm Teneo, seeking advice on capital structure and aiming to diversify funding sources beyond Bahrain.
The history of financial challenges at McLaren extends back several years, with auditors sounding alarms in September 2022 about the company’s collapse risk due to the global semiconductor shortage. The situation has been exacerbated by quality control issues during production at McLaren’s Woking facility.
In a strategic move in 2020, McLaren sold its iconic Woking headquarters to investment firm GNL in a £170 million deal. However, McLaren retains tenancy rights for the next two decades, ensuring continuity despite the change in ownership. The Gulf investment vehicle, Mumtalakat, is poised to become McLaren’s sole shareholder through a “full recapitalisation” deal announced in December.