[Team] Williams: Do they have a spare tub?

[S griffin]

Originally Posted by peebee2

Apart from their press release about looking for a buyer!

Yeah, but it had gone a bit quiet lately. I was expecting there to be some noises prior to an annoucement

[S griffin]

Originally Posted by billy bleach

"Came out of nowhere"?are you saying you were not kept informed? Truly shocking

No, just wasn’t expecting the announcement just like that, Williams obviously made sure it was done in secret prior to it going public. Also with all the talk of RP and their brake ducts the focus had gone off Williams a bit

[steve_r]

There are all sorts of rules and regulations about buyouts and takeovers - so it's no surprise that only a chosen few will have heard about this up front.

[chillibowl]

True, but it is a publicly traded company no?

Finding new investors is one thing but a sale of the team...for a family that looked like they would never sell.

No manu interest despite the new Concorde agreement, more prize money, chassis carry over to next year, budget cap etc.

Seems like an opportunity missed imo.

Or maybe the new buyers have that deal in the works.

[crmalcolm]

Originally Posted by S griffin

Yeah, but it had gone a bit quiet lately. I was expecting there to be some noises prior to an annoucement

From who, and when?

29 May 20 - Williams consider selling F1 team

30 May 20 - This is an announcement of a possible offer under [the City code] on takeovers and mergers

4 Jun 20 - Ecclestone on the hunt for buyer for Williams F1

8 Jun 20 - With the Grove squad desperately on the lookout for new investors and possibly even a buyer

13 Jun 20 - they are planning to sell the team.

3 Jul 20- Bankers from Allen & Co are holding digital conference calls for investors.

7 Jul 20 - 'the process is going well and we’re really happy with the interest that we’ve received'

21 Aug 20 - Over the last three months, Williams have met with a selection of potential investors as part of a formal sale process and subsequently reviewed submissions of interest.

It is in this last story that the reason you may not have been kept up to speed by individuals involved is revealed. The potential investors, along with Williams and Allen&Co were in all likelihood working to NDAs. The story has continued to be reported on, but with the complexities of the legal situations, what more do you think they could have said?

[Greem]

Originally Posted by chillibowl

True, but it is a publicly traded company no?

Williams Grand Prix Holdings PLC is traded on the stock exchange in Frankfurt.

As of right now, it's the sole controlling entity of Williams Racing, registered as Williams Grand Prix Engineering Ltd (aka the only 'person with significant control', so the sole shareholder). That's the company that's been sold, the rest of the group remains intact.

Presumably that will be changing to the investment fund and there will be changes in the board.

[chillibowl]

Originally Posted by crmalcolm

From who, and when?...The story has continued to be reported on, but with the complexities of the legal situations, what more do you think they could have said?

in fairness though the stories are usually aimed at them selling certain assets/divisions or looking for investors...so a complete buy-out/sale of all the family's assets, holding, and liabilities is a bit of a surprise imo.

also, the tone of this thread has very been much 'why would anyone invest in Williams' with only a few people suggesting that Williams is actually a good purchase.

anyways, it was a pretty innocent comment from S griffin. not sure why everyone needs to pile up on him for it.

[chillibowl]

Originally Posted by Greem

Presumably that will be changing to the investment fund and there will be changes in the board.

no doubt changes and hopefully a new direction.

with covid and sports just returning, more people then ever are watching TV (if that was even possible).

i dont know the size of Williams' debt, but €112 million for the purchase of a sports team which performs on a international level and has the potential and facilities to become a Merc clone seems like a freaking bargain.

heck, for Dorilton, this may even just be chump change compared to how much, i am presuming, they have made in the markets in the last couple of months.

[bjohnsonsmith]

It's the end of an era.

Dorlinton like Williams are themselves a family business. Considering they have a portfolio which consists of health services, industrial services and specialty manufacturing, I was thinking one of the reasons Dorlinton Capital bought the Williams Group, was so they could acquire Williams Advanced Engineering, which itself is involved in specialty manufacturing.

https://www.doriltoncapital.com/home

According to this article in Racer:

"Dorlinton Capital has purchased the team — consisting of the F1 business, the remaining minority stake in Williams Advanced Engineering and all other trading assets and liabilities — for €152m ($179.5m), with Williams stating the sale “received the unanimous support of the Board of Williams, including Sir Frank, who determined the transaction delivers the best outcome for the company’s shareholders and secures the long-term success of the Williams Formula 1 team.”

https://racer.com/2020/08/21/william...ilton-capital/

[andy97]

Originally Posted by bjohnsonsmith

It's the end of an era.

Dorlinton like Williams are themselves a family business. Considering they have a portfolio which consists of health services, industrial services and specialty manufacturing, I was thinking one of the reasons Dorlinton Capital bought the Williams Group, was so they could acquire Williams Advanced Engineering, which itself is involved in specialty manufacturing.

https://www.doriltoncapital.com/home

According to this article in Racer:

"Dorlinton Capital has purchased the team — consisting of the F1 business, the remaining minority stake in Williams Advanced Engineering and all other trading assets and liabilities — for €152m ($179.5m), with Williams stating the sale “received the unanimous support of the Board of Williams, including Sir Frank, who determined the transaction delivers the best outcome for the company’s shareholders and secures the long-term success of the Williams Formula 1 team.”

https://racer.com/2020/08/21/william...ilton-capital/

But Dorlinton will only have a minority stake in Williams Advanced Engineering, with no control, unless they buy out the purchasers from just about a year ago.

[bjohnsonsmith]

Originally Posted by andy97

But Dorlinton will only have a minority stake in Williams Advanced Engineering, with no control, unless they buy out the purchasers from just about a year ago.

Maybe they will.

[Richard C]

Originally Posted by andy97

But Dorlinton will only have a minority stake in Williams Advanced Engineering, with no control, unless they buy out the purchasers from just about a year ago.

Yes, it was my understanding that WAE was previously sold off. If Dorilton wanted WAE, then just buy WAE and not the F1 side. I think they bought just what they wanted to buy.

I can't help but to find the purchase odd. While I am a fan of F1, I just can't see how it makes sense to invest in an F1 team right now. Typically I think those who invest in F1 are those who are fans. Moths that are drawn to the light. Someone at Dorilton is an F1 fan, or whoever was pitching the sale at Williams did a great job. Maybe both.

Richard

[Moneyseeker]

Originally Posted by Richard Casto

Yes, it was my understanding that WAE was previously sold off. If Dorilton wanted WAE, then just buy WAE and not the F1 side. I think they bought just what they wanted to buy.

I can't help but to find the purchase odd. While I am a fan of F1, I just can't see how it makes sense to invest in an F1 team right now. Typically I think those who invest in F1 are those who are fans. Moths that are drawn to the light. Someone at Dorilton is an F1 fan, or whoever was pitching the sale at Williams did a great job. Maybe both.

Richard

In buying Williams they are getting the factory, the site the whole thing - that on it's own must have a base value without a Williams car turning a wheel. The Latifi loan (rumoured at $50m) was secured on the heritage cars and factory alone, so we could presume that as security they undervalued the assets to get a worse case scenario - so probably at least $50m - $75m of the 150euro purchase price could be realised in assets sales alone, aside from the team.

Perhaps if another manufacturer did want to enter F1, they would go the acquisition route and Williams with it's infrastructure could be sold on again (this may well happen IMO).

Overall it has gone from a majority owned family business to a 'commodity' that can be bought and sold and surely for capital investment businesses, everything is for sale if the price is right?

Probably they think they have bought at the bottom and have several ways open to them of exiting if they wish - the higher risk return on team results, selling the operation to a manufacturer or asset sales.

[mark_l]

Interesting paragraph from the motorsportweek.com article

"Williams has sold up to BCE Limited, a fund which is managed by Dorilton Capital Management LLC (Dorilton Capital), a private investment firm that operates out of New York."

Who do we know in F1 with the initials BCE?? Coincidence??

[peebee2]

BCE? Now that would be hilarious!

[Richard C]

Originally Posted by Moneyseeker

Probably they think they have bought at the bottom and have several ways open to them of exiting if they wish - the higher risk return on team results, selling the operation to a manufacturer or asset sales.

Makes sense.

I wonder who has been guiding them. There must be an insider in the sport that is acting as a consulting for Dorilton. And the topic of what (if any) changes should be made from a management perspective has to have been discussed (at least inside Dorilton). I can only wonder what they plan to do. As always there is likely to be some period in which nothing initially changes as they get a deeper understanding of what they just purchased.

Quote by Dorilton Capital Chairman Matthew Savage

We look forward to working with the Williams team in carrying out a detailed review of the business to determine in which areas new investment should be directed.

https://www.motorsport.com/f1/news/w...apital/4860536

However on the Dorilton website, they say their focus is on companies that have "Strong management teams" (to me this means they are not trying to "fix" their acquisitions as that requires them to take very active role) and that "Existing equity holders to retain a significant ongoing equity interest post transaction for new platforms" (to me they want to have those they partner with to have skin in the game). Might the Williams family remain as a minority shareholder?

Richard

[peebee2]

Originally Posted by Richard Casto

Makes sense.

I wonder who has been guiding them.

I thought I read that the real BCE was involved?

[bjohnsonsmith]

Originally Posted by Richard Casto

Makes sense.

I wonder who has been guiding them. There must be an insider in the sport that is acting as a consulting for Dorilton. And the topic of what (if any) changes should be made from a management perspective has to have been discussed (at least inside Dorilton). I can only wonder what they plan to do. As always there is likely to be some period in which nothing initially changes as they get a deeper understanding of what they just purchased.

Quote by Dorilton Capital Chairman Matthew Savage



https://www.motorsport.com/f1/news/w...apital/4860536

However on the Dorilton website, they say their focus is on companies that have "Strong management teams" (to me this means they are not trying to "fix" their acquisitions as that requires them to take very active role) and that "Existing equity holders to retain a significant ongoing equity interest post transaction for new platforms" (to me they want to have those they partner with to have skin in the game). Might the Williams family remain as a minority shareholder?

Richard

They also say on their About page: "We prefer to create value over the longer term by reinvesting cash flow while avoiding excessive leverage."

They also say: "We work actively with existing management teams recognizing that long-term business success is the result of a team effort. Dorilton views its role as providing additional capital for acquisitions and growth projects and support and expertise to take its companies to the next level."

[Moneyseeker]

Originally Posted by Richard Casto

Makes sense.

I wonder who has been guiding them. There must be an insider in the sport that is acting as a consulting for Dorilton. And the topic of what (if any) changes should be made from a management perspective has to have been discussed (at least inside Dorilton). I can only wonder what they plan to do. As always there is likely to be some period in which nothing initially changes as they get a deeper understanding of what they just purchased.

Quote by Dorilton Capital Chairman Matthew Savage



https://www.motorsport.com/f1/news/w...apital/4860536

However on the Dorilton website, they say their focus is on companies that have "Strong management teams" (to me this means they are not trying to "fix" their acquisitions as that requires them to take very active role) and that "Existing equity holders to retain a significant ongoing equity interest post transaction for new platforms" (to me they want to have those they partner with to have skin in the game). Might the Williams family remain as a minority shareholder?

Richard

Apparently, Jame Matthews 1994 Formula Renault UK champion - and now highly sucesssful with his eden rock fund, is involved with Dorilton.

[S griffin]

Originally Posted by Moneyseeker

Apparently, Jame Matthews 1994 Formula Renault UK champion - and now highly sucesssful with his eden rock fund, is involved with Dorilton.

Never knew that, so their might be some royal connections within Williams then! Would be quite appropriate for a team like that too

[Moneyseeker]

Originally Posted by S griffin

Never knew that, so their might be some royal connections within Williams then! Would be quite appropriate for a team like that too

I think they already had that with JYS when has was the RBS ambassador and Peter Philips (Princess Anne's son) worked on the RBS sponsorship account.

[S griffin]

Maybe that is why it seems so appropriate they have another royal connection. As well as the fact Williams are like F1 royalty to a lot of people

[midgetman]

Ummm I've never heard of him or any "royal" connection whatever that might be

Sent from my SM-A520F using Tapatalk

[uesugi kenshin]

Originally Posted by S griffin

Maybe that is why it seems so appropriate they have another royal connection. As well as the fact Williams are like F1 royalty to a lot of people

Is this a Prince Andrew type connection?

[S griffin]

Originally Posted by midgetman

Ummm I've never heard of him or any "royal" connection whatever that might be

Sent from my SM-A520F using Tapatalk

He’s married to Kate’s sister, maybe not quite royalty, but close enough