Why is Sahara wanting to sell shares and what is going on for Mallya?

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The Sahara group which owns a 42.5% stake in Force India wants to sell there stake in the team. Sahara paid $100 million (£699,547,750) for a 42.5% stake in the team.

The reason Sahara want to share their stake in the team is to free the founder Subrata Roy from prison. The group still needs to gain the permission of India’s Supreme Court to sell their stake and other assets. Former F1 marketing executive Mark Gallagher said such a sale would not be easy.

“I don’t think anybody will pay 100 million pounds, euros or dollars for 42.5 percent of a mid-level F1 franchise.” However, others say it would be easier for owner Vijay Mallya to buy back Sahara group share.

Mallya is also under pressure from lenders after not meeting loan repayment obligations linked to his grounded Kingfisher Airlines, the stake on its own could be a hard sell. Lenders are owed more than $1bn (£698,545,980) relating to the airline.

The former Caterham administrator Finbarr O’Connell says “Unless you are just doing it for sponsorship, I imagine you would want control. And generally sponsors don’t want to be shareholders.”

A Sahara spokesman said in statement that there were “no talks with anybody at the moment” about selling the Formula One team stake.

When asked whether the co-owners needed permission for Mallya to sell the teams Chief Operating Officer Otmar Szafnauer, said he didn’t know. Recently Mallya told Economic Times it was “time to slow down, semi-retire and enjoy life”.

Jack

Jack is responsible for the day-to-day running of Formula One Vault. He brings you all the brilliant content. Has an obsession with all things Formula One and anything with an engine.

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