Arrows Grand Prix International

25 Jan 1999

SALE OF THE ARROWS FORMULA ONE GRAND PRIX RACE TEAM

SIMMONS & SIMMONS ADVISES ON SALE OF THE ARROWS FORMULA ONE GRAND PRIX RACE TEAM AND RELATED ENGINE BUSINESS, VALUED AT OVER US$100M

Simmons & Simmons advised Tom Walkinshaw, owner of Arrows Grand Prix International, on the sale of the Arrows Formula One race team and related Formula One engine business to a company formed and owned by Morgan Grenfell Private Equity and Prince Malik Ado Ibrahim, and in which Tom Walkinshaw will retain a minority shareholding. The deal values the team and engine business at over US$100m.

The deal involved a series of transactions resulting in the consortium owning the Arrows Formula One Grand Prix race team business and having the right to acquire the Grand Prix racing engine business. Tom Walkinshaw retains an interest in the new entity and will continue as chairman. Five per cent of the equity is reserved for management and staff incentive options.

The team at Simmons & Simmons rose to the challenge of bringing a very complex deal together over the Christmas period. Of particular note was the application of venture capital techniques to the world of Formula One.

The buyout has resolved speculation over the future ownership of the team and creates the opportunity for management to keep the team in Great Britain and provides financial security.

The Simmons & Simmons team was led by partners Jane Newman (Corporate) and Mark Dewar (Commercial), assisted by Allan Rippon, Mark Millar, Ben Plant, Fiona Dewson, Sebastian Rice, Sarkis Zeronian (Corporate), Catherine Weiss, Matthew Horton, (Commercial), Paul Hale, Simon Yates, Gareth Amdor (Tax), Charles Pollock, Tim Barnard (Property), Adrian Smith (Intellectual Property), Nick Dent, James Vertigen (Employment) and Andrew O'Keeffe (Banking).

Commenting on the sale, partner Mark Dewar said:

"Formula One is growing fast. It was very rewarding to work again with Tom Walkinshaw and his team on one of the most exciting Formula One projects in recent times that should resource Arrows to shift up the Formula One grid."

Jane Newman added:

"It was an exciting, fast moving deal from start to finish, being completed in a little over 3 weeks in the Christmas and New Year period, and with few pit stops. What else would you expect in Formula One? The commitment and teamwork shown by everyone involved at such a time of the year was terrific."

ENDS Notes for editors:

1. Simmons & Simmons is worldclass law firm with offices in London, Paris, Brussels, Düsseldorf, Lisbon, Milan, Rome, Madrid, Abu Dhabi, Hong Kong, Shanghai and New York with over 1,400 staff worldwide. For further information on Simmons & Simmons please visit our website at www.simmons-simmons.com.

2. The Corporate Department at Simmons & Simmons comprises over 220 legal staff, including 47 partners. It advises on new issues, takeovers and on the whole range of merger and acquisition and corporate finance activity as well as other corporate law matters for listed and unlisted companies, in the United Kingdom and overseas.

3. The Commercial Group consists of 9 partners and 24 lawyers in total. It advises on a wide range of commercial transactions both in the UK and overseas in sectors such as defence, railways, telecommunications, IT, energy, food & drink, motors, PFI and other major projects. In particular, the Group has extensive experience of advising on contracts involving public sector organisations.

For further information, please contact:
Mark Dewar, Partner, Commercial
Jane Newman, Partner, Corporate
Louise Resnick, Media Relations Manager at Simmons & Simmons