MUMBAI: British private equity firm CVC Capital Partners has further diluted its stake in motorsports racing company Formula One with US asset manager Waddell & Reed Financial purchasing 5.5 per cent stake for approximately $500 million at an enterprise value of $9.1 billion.

With this deal, the private equity and investment advisory firms stake will come down to about 35 per cent while that of Waddell & Reed will go up to 20.9 per cent from the present 15.4 per cent.

"CVC Capital Partners is pleased to announce that several funds managed by Waddell & Reed Investment Management Company and Ivy Investment Management Company have today agreed to invest a further $500m in a private placement in Formula 1 at $9.1bn enterprise value, increasing their aggregate stake to 20.9 percent," CVC said in a statement.

Recently, CVC had reduced its stake by selling 21 per cent stake to three institutional investors - BlackRock, Waddell & Reed, Norges Bank - in a cash for equity deal valued at $1.6 billion.

Waddell & Reed had invested $1.1 billion through its Asset Strategy mutual funds and separate accounts. Norges Bank is believed to have contributed around $300 million and BlackRock the remaining $200 million.

CVC will continue to be Formula One?s largest and controlling shareholder even after the stake sale while British billionaire and F1 supremo Bernie Ecclestone holds 5 per cent stake in the company.