In a bid to release its jailed founder, Sahara Group is attempting to raise money by selling several of its high value properties. A Reuters report says that the conglomerate is looking to sell its 42.5% stake in Force India F1 team which it bought in 2011 for a sum of USD 100 million.
The sale of stake in the F1 team is a part of its attempt to raise a combined sum of 778.38 million dollars. The company has also put some of its big ticket hotels on sale. It needs to pay a total sum of USD 5.3 billion dollars so that it can pay back the money raised from small investors though sale of bonds that were declared illegal by the Supreme Court. Only then Mr. Roy can be released.
Coming back to the F1 team, Sahara Group and Vijay Mallya own 42.5% stake each in the outfit while the remaining 15% is with Dutch entrepreneur Michiel Mol. Motorsport experts say that it would be difficult to find a buyer who is interested in purchasing 42.5% stake in a mid-field F1 team for around USD 100 million.
The best bet is to put the entire team on sale because potential buyers would be interested in having total control of the team. It’s to be noted that Vijay Mallya too is under tremendous pressure to pay off the Kingfisher Airlines debts.
Over the course of last F1 season, Sahara Force India Formula 1 team held talks with Renault and Aston Martin Racing for potential takeover deals but both fell through.
With Sahara not willing to extend its involvement with the team, the future of Force India F1 facing uncertainty to some extent. We would be knowing more as the 2016 season unfolds in the next few weeks.
Via – Reuters.com