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EM.TV Formula One stake buy costs $1.65bln

FRANKFURT: German media production and marketing group EM.TV & Merchandising AG said on Wednesday its acquisition of a 50 percent stake in Formula One motor racing cost it $1.65 billion in cash and shares.

The Munich-based group also said that it was in talks to buy a further 25 percent stake in Formula One holding company SLEC from Formula One co-owner and sports promoter Bernie Ecclestone.

EM.TV said that it had paid $712.5 million in cash to Morgan Grenfell Private Equity and US-based private equity investment firm Hellman & Friedman for their respective 12.5 percent and 37.5 percent stakes in Formula One holding company SLEC.

In addition, it had also sweetened the deal with 10 million EM.TV shares bringing the value of the deal to around $1.65 billion, an EM.TV spokeswoman told Reuters.

The transaction was conducted through a holding company called Speed Investment, which held Morgan Grenfell and Hellman & Friedman's Formula One interests, EM.TV said. EM.TV said it had plans to float SLEC in the medium-term.-Reuters