UB Group sells stake in F1 team to Sahara
October 12th, 2011 - 11:59 pm ICT by IANSNew Delhi, Oct 12 (IANS) Vijay Mallya-led UB Group Wednesday sold a stake of 42.5 percent in its Formula 1 team Force India to Subroto Roy-led Sahara Group, which will invest $100 million in the team.
“We have arrived at a partnership with the Sahara Group, which will invest $100 million in the team and would now own an equity stake of 42.5 percent, I will own 42.5 percent and the rest 15 percent would be owned by the Mol family,” Mallya said at a press conference here.
The team would heanceforth be known as Sahara Force India.
“We will use the funds for a new air tunnel, better R&D; (research and development) and ungradation of some of the facilities at the company’s factory based in Silverstone in the UK,” Mallya said.
Roy, who will become the chairman of the board of the team, said: “Now we have to sit together, talk together, and discuss about how to make this team as the best team.”
Liqour baron Mallya had bought the Spyker Ferrari Formula 1 team in 2007 through a joint venture company named Orange India Holdings with Dutch e-commerce businessmen Jan and Michiel Mol, for reportedly around 90 million euros.
The team was renamed Force India in the 2008 season.
Currently, the team is placed at the sixth position in the F1 rankings and is based in Silverstone, Britain.
The liqour baron also owns an Indian Premier League (IPL) team, Royal Challengers Bangalore. Sahara Group holds interests in financial services, real estate, media and hospitality sectors and is a major promoter of sports in India.
The company also owns IPL team Pune Warriors India and sponsors the Indian cricket team.
- Mallya pumps in 20 million pounds into Force India operation - Mar 13, 2012
- Mallya pumps in $32 mn into Force India (Lead) - Mar 13, 2012
- Force India not ready to take an Indian driver - Oct 13, 2011
- Sahara's pull out unfortunate: BCCI - Feb 04, 2012
- Sutil wants early renegotiation of Force India contract - Oct 24, 2011
- Force India to end drivers' suspense before Abu Dhabi - Oct 29, 2011
- Formula One will boost Indian sports: Mallya - Oct 26, 2011
- No plans to sell Force India team: Mallya - Oct 07, 2011
- No one ready to pay full sponsorship of Team India: Sahara - Feb 13, 2012
- Double blow for BCCI, Sahara walks out of sponsorship deal, Pune Warriors (Roundup) - Feb 04, 2012
- Sahara hits back after BCCI rejcts its demands (Roundup) - Feb 13, 2012
- Have a tough decision to make on drivers: Mallya - Oct 30, 2011
- Former Ferrari reserve driver Bianchi moves to Force India - Jan 27, 2012
- An emotional and special moment: Mallya - Oct 28, 2011
- Decision Monday on Sahara-BCCI dispute - Feb 12, 2012
Tags: 100 million, air tunnel, businessmen, chairman of the board, challengers, equity stake, force india, formula 1, hospitality sectors, indian cricket team, ipl, joint venture company, mallya, michiel mol, sahara group, silverstone, sixth position, sports in india, spyker, subroto roy