Three investment groups have bought a 21 per cent stake in Formula One from private equity firm CVC Capital for $1.6 billion (€1.26 billion) ahead of the motor racing company’s planned flotation in Singapore.

The deal sets a benchmark valuation of at least $7.6 billion for the company as financial advisers begin to target cornerstone and retail investors during the pre-marketing process of the initial public offering.

The shares are expected to debut in June.

The three investors are US groups Waddell & Reed and BlackRock, along with Norges Bank Investment Management, the asset management unit of the Norwegian central bank, CVC confirmed yesterday. – (Reuters)