Alpha Prema

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Organisation of commercial operations of Formula One.

Alpha Prema UK Limited (Alpha Prema) is a company which owns the "Formula One Group" of companies (see table). This includes Formula One Holdings, the company which holds the lucrative commercial rights to F1. Alpha Prema is owned by CVC Capital Partners and Bernie Ecclestone. The exact shareholding is unclear, but CVC owns the majority.

[edit] Background

Alpha Prema UK Limited was incorporated on November 4, 2005.

Until November 2005 the Formula One group was owned by SLEC Holdings, itself owned by an Ecclestone family trust and Speed Investments (a grouping of Bayerische Landesbank, JP Morgan Chase and Lehman Brothers).

On November 25 CVC announced it was to purchase both the Ecclestone shares (25% of SLEC) and Bayerische Landesbank's 48% share (held through Speed Investments). This left Alpha Prema owning 71.65% of the Formula One group. On December 6, Alpha Prema acquired JP Morgan's share to increase its ownership of Formula One to 86%; the remaining 14% was held by Lehman Brothers.

On March 21, 2006 the European Commission announced approval of this deal, conditonal upon CVC relinquishing control of Dorna, promoter of MotoGP. On March 27 CVC announced the completion of the Formula One transaction.

On March 30, 2006 CVC purchased the 14% share of SLEC held by Lehman Brothers to give Alpha Prema full control of the Formula One Group.