Cyrte Investments acquires 5% of Williams
If the first trading day of Williams did not necessarily meet the expectations of existing shareholders, some investors have already positioned themselves as significant shareholders in the Grove structure. Thus, Cyrte Investments, the investment holding of John de Mol, announced it has acquired 5% of the capital in the markets.
If the first trading day of Williams did not necessarily meet the expectations of existing shareholders, some investors have already positioned themselves as significant shareholders in the Grove structure. Cyrte Investments, the investment holding of John de Mol, announced that it has acquired 5% of the capital on the markets.
Cyrte Investments is now the fourth shareholder (in terms of percentage of shares held) behind Frank Williams (50.3%), Christian Wolff (10%), and Patrick Head (a little more than 5%).
But John de Mol is not an unknown figure in the Formula 1 microcosm as he is a co-investor, alongside Vijay Mallya, in the financial structure Orange India Holdings since the acquisition of the Spyker team, which was then renamed Force India.
When the said team still belonged to the Dutch manufacturer, its general manager was none other than Spyker’s CEO, Michiel Mol, the son of John. Michiel Mol then left his position and sold his shares in the manufacturer to avoid any conflicts of interest during the process of selling the Formula 1 team.
John de Mol therefore takes a stake in a second Formula 1 team as part of an agreement that Frank Bortman, CEO of Cyrte Investments, describes as strategic: « This investment will see Cyrte and Williams create a strategic alliance in which we will help the team develop its potential across its entire business operations. This will also provide Cyrte with a platform to participate in the growth of Formula 1.»
We find here the same platform strategy that Genii was able to implement when acquiring the Renault F1 Team: the team provides a communication showcase while motorhomes and VIP reception areas offer a setting for business discussions highly valued by executives. Sauber has also created its own structure of this kind through its Sauber Club One: sponsors make a financial contribution to the Swiss team but choose not to appear on the cars to maintain a low profile in these times of acute economic crisis.
With the participation of RacingBusiness.fr
