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Home > Sports > Formula One > Report

Spyker agrees to sell F1 team for 88m euros

September 20, 2007 22:54 IST

Spyker Cars NV is to sell its loss-making Formula One team to a group which includes businessman Vijay Mallya [Images] for $123 million, the Dutch sports car maker said on Thursday.

"With the sale of the Formula One Team now agreed in principle ... Spyker Cars N.V. will return to the task of finalizing the internal strategic review and associated refinancing which has been ongoing since May," Spyker said in a statement.

On September 1, Spyker's director of Formula One, Michiel Mol, said he had teamed up with Mallya to make an 80 million-euro bid for the team. The offer was made through Strongwind, the investment arm of the Mol family, and Watson Limited, which is owned by Mallya.

Mallya is chairman and controlling shareholder of the UB Group, which has beer, spirits and airlines operations in India.

Spyker shareholders will vote on the sale on September 29.

Spyker bought the Formula One team from Midland for $106.6 million last year. The team had a 13 million euro loss in the first half of the year, lifting Spyker's overall loss to 29.9 million euros from 1.1 million in the year-ago period.

Spyker, which makes two-seaters that retail from around 250,000 euros, has forecast a loss this year. It is seeking a permanent chief executive and chief financial officer. Its shares ended 13 percent up at 3.50 euros on Thursday.

Formula One: The Complete Coverage