Deal worth $100 mn, Mallya now holds 42.5%.
With just 17 days to go for the inaugural Indian Grand Prix, Sahara Group on Wednesday bought a 42.5 per cent stake, worth $100 million, in Vijay Mallya’s Force India F1 team.
The team has been re-christened Sahara Force India and Subroto Roy is the chairman designate. Mallya, with 42.5 per cent stake in the team, will continue to be the team principal and managing director. The remaining 15 per cent will be with the Mol family.
“The capital infusion will help us to now scale up our research and development efforts, and invest in upgradation of facilities. It is a big shot in the arm for the team,” said Mallya, adding he had initially approached Roy with a sponsorship deal, but the chairman of the Sahara India Pariwar had taken a keen interest in the workings of the team and expressed his interest in owning a stake.
The deal was subsequently restructured and fresh shares will now be issued to the Sahara Group to become a co-owner of India’s first and only Formula One team. Force India was formed in 2007 when a consortium led by Mallya and Dutch entrepreneur Michiel Mol bought loss-making Spyker Formula One team for euro 90 million. Mallya renamed the team 'Force India' for the 2008 season of Formula One.
Mallya also owns the IPL team Royal Challengers. The Sahara Group, which has interests in financial services, real estate, media and hospitality, is also a major promoter of sports in India. Sahara sponsors the national cricket team and owns the newly constituted IPL team Pune Warriors. The company also supports the Indian national hockey team.
The Force India team is at the sixth position in the Formula 1 constructor's championships with 48 points behind Renault. India will host its first Formula 1 Grand Prix on October 30, on a 5.14 km track with a capacity of 120,000 in Greater Noida built by Jaypee Sports International.
