December 14, 2016 / 2:10 PM / a year ago

Liberty Media to raise $1.55 billion to fund Formula One deal

(Reuters) - Liberty Media Corp LMCA.O, led by U.S. cable mogul John Malone, said on Wednesday it would raise $1.55 billion to fund its acquisition of Formula One racing car series.

FILE PHOTO - Reporters are silhouetted by a screen showing a F1 logo during a news conference to announce a Formula One race in Mexico City July 23, 2014. REUTERS/Daniel Becerril

The company said investors, including Coatue Management LLC, D. E. Shaw and Jana Partners, had committed to the financing through a subscription for Liberty’s Series C common stock at $25 per share.

Liberty Media took control of the cash-generating glamour sport in September in a deal valued at $8 billion, ending a long-running saga surrounding the sport’s ownership and potential flotation.

At the time, Liberty Media acquired an initial 18.7 percent stake from controlling shareholder CVC Capital Partners.

The money raised from the investment will be used to increase the cash component paid to the consortium of selling Formula 1 shareholders led by CVC Capital Partners, Liberty Media said on Wednesday.

Reporting by Narottam Medhora in Bengaluru; Editing by Anil D'Silva

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