Rumor of a Cosworth IPO

[WhiteBlue]

Cosworth not denying stock market floatation reports
Racing series F1
Date 2010-05-25
By Motorsport.com/GMM

According to reports in the financial media, F1 engine supplier Cosworth could soon be floated on the stock exchange.

The reports estimated the value of the flotation at about (US) $360 million, following the famous British marque's return to F1 with Williams and all three of the new teams.

Main investors Gerald Forsythe and Kevin Kalkhoven, who bought Cosworth from Ford in 2004, are reportedly considering the move as profits are expected to surge from $2m in 2008 to more than $70m this year.

The reports said auditor Deloitte may have been hired for the initial public offering, and a source admitted that business has picked up dramatically since the company laid off 200 staff when it dropped out of F1 at the end of 2006.

The Northampton Chronicle quoted a spokesman as saying on Tuesday: "As with any company that enjoys a particularly successful period, there is speculation that they will float. Those things go hand in hand."

This sounds like a profitable way to run the company for the current owners. The disadvantage of having to reveal certain figures would probably be more than offset by making some nice cash out of their investment.

Cosworth's F1 engine seems to be competitive or Williams would be changing to Renault power for next year. That means that a public company could become the target of any automotive manufacturer who wants to get into competition engines fast. It could help long term to keep up the stock value.

[JohnsonsEvilTwin]

I think this is a bad move. Once floated, they have an obligation to their shareholders.
This is not really conducive to F1.

[pgj]

It could also be a quiet way for a manufacturer to buy a share of Cosworth.

[Chaparral]

Yeah its the logical thing to do especially if they want to expand the manufacture base and theyre in it for the long haul - Kalkhoven is a very cagey Aussie business man and I would expect them to go into touring cars, sports cars possibly Indycar etc etc - good luck to them. I believe the Cossie is near equal with anything out there this year - a few degredation problems from what I hear but that will be solved

[lebesset]

would it be a good move for the owners is the only thing that counts
F1 is no longer their raison d'etre anyway , and their non-racing activities will produce most of the profits

KK is a venture capitalist , so buying up and selling on is just his style , good english upbringing

[autogyro]

Global engine and Kers development will be the main issue here.
I think I know who will be interested.

[Chaparral]

KK is a venture capitalist , so buying up and selling on is just his style , good english upbringing

Well disagree Gerald Forsythe and Kevin Kalkhoven along with Paul Gentilozi have long participated in motor sport in fact owned CART - venture capalist wholey and solely I dont think so - Cosworth once dominated F1 Touring Cars some time ago and if your supplying 2-3 different formula and some road car applications its a very broad and good base for business

[lebesset]

CART and CHAMP ?
went bust if I remember

just a rich man's hobby , bought cosworth to ensure engine supply if I remember

but with no more race series , no longer necessary

[WhiteBlue]

Global engine and Kers development will be the main issue here.
I think I know who will be interested.

I agree that GRE and KERS should be good for a company like Cosworth. They have acquired competence in many technology fields after they pulled out of F1 in 2006. I would expect them to do a good job in a new type ICE and the KERS components required for this new engine type.

Would that be attractive to certain auto manufacturers? Probably, if the respective manufacturer has no experience with small engines, new HCCI technology, high pressure direct injection, turbo technology or KERS integration. That is true for some brands.

Traditional high end brands may have a lack of experience with small turbo charged engines if they were not doing F1 in the eightees. Other brands may have no recent knowledge of high pressure petrol injection and HCCI. Other brands may have deficits in KERS integration. So I do not see a particular brand which would be attracted if Cosworth makes a good job with the 2013 F1 power train.