Williams Grand Prix Holdings (WGPH) company have announced that it could sell its businesses, including Williams F1 team.
This announcement comes just minutes after Williams terminated their sponsorship deal with RoKiT with immediate effect.
Williams can confirm it has terminated its sponsorship arrangements with ROKiT effective immediately. pic.twitter.com/f2vgYDyRi7
— WILLIAMS RACING (@WilliamsRacing) May 29, 2020
WGPH board however have stated that they’re currently “undertaking a review of all the various strategic options available to the Company.”
Whilst raising new capital is currently on the table, divestment of either minority or majority stakes aren’t ruled out along with possibility of selling the whole company.
No decisions however have been made yet regarding the optimal outcome, but the company has announced the commencement of a “formal sale process.”
WGPH have confirmed that no approaches have currently been made and is currently locked in preliminary discussions with various parties, in regard to potential investment in the company.
It is also possible that WGPH could alter or terminate the process at any time and make an official “announcement as appropriate.”
WGPH also have the right to reject any approaches or terminate discussions with interested parties at any time.
Williams’ financial affairs don’t look good following a series of financial losses in 2019, in which sales fell €17m from €195m in 2018 to €178m in 2019 according to figures released by Mike Driscoll, CEO of Williams.
Williams F1 meanwhile suffered a loss of €39m after making €144m in 2018 but a combination of poor results and other factors resulted in a fall to just €105m in 2019
Driscoll however has admitted that the losses are a reflection of “the recent decline in competitiveness of the F1 operation and the consequent reduction in commercial rights income.”
Significant restructuring however has been put in place across the last nine months with the technical leadership team strengthened.
These financial losses however are a reflection of Williams’ decline in recent years following a brief reconnaissance between 2014-16 when F1 entered the current hybrid era.