NOVEMBER 9, 1998
Reynard goes public
AS we predicted recently Reynard Motorsport is to float on the New York Stock Exchange. Reynard Motorsport Inc., a company based in Delaware, last week registered with the US Securities and Exchange Commission for a share issue, aiming to raise $57.5m.
The prospectus for the flotation makes interesting reading, giving some revealing details about the company - which owns 15% of British American Racing, for which it paid $5.25m, in association with Mount Eagle Inc. (a company owned by Craig╩Pollock and Gerry Forsythe) and BAT (Westminster House) Ltd. Reynard has a deal to supply expertise and personnel to BAR but is being paid for this work and the prospectus said that there is "no plan for additional equity investment" in BAR.
The flotation will include Reynard Composites, Reynard Special Vehicles, Reynard Racing Cars, Reynard Racing Designs and Reynard North America Inc. and the shareholders in the British-based companies recently swapped their shares for stock in the American company, which is headed by former Toleman F1 boss Alex Hawkridge, a longtime friend of Adrian Reynard.
The information lodged with the SEC indicates that Adrian Reynard controls 78.3% of the shares at the moment and it is his intention to use $12.4m of the money raised to buy transmission and gearbox company Gemini Transmissions Ltd. He will receive $10.4m, which is owed to him by the company. The rest of the money will be used to increase business with the aim to expand in CART, Formula Nippon in Japan and in sportscar and touring car racing. The BAR deal will continue with technical director Malcolm Oastler expected to work full-time on the F1 program for the next three years. Adrian Reynard and Rick Gorne will spend half of their time on the Grand Prix team.
In addition deals are in place to design seats for the Virgin Atlantic airline and to design and build a roadgoing sportscar for the Strathcarron Family, the intention being for Lord Strathcarran and his son the Hon. Ian Macpherson to market the car.
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