Sahara buys Force India stake

Indian sports promoter Sahara India Pariwar has purchased a 42.5% share in the Force India Formula One team.

The 100million US dollar (£63.4million) deal sees Sahara India Pariwar assume co-ownership of the Silverstone-based outfit, which will become known as the Sahara Force India F1 Team.

Dr Vijay Mallya, who established India's first F1 team in 2007 with the purchase of the Spyker operation, has seen his shareholding reduced to 42.5%, with the remaining 15% in the hands of the Mol family, whose investment dates back to the Spyker days.

A joint statement from Sahara and Force India read: "Sahara India Pariwar, a leading promoter and patron of sports in India, today announced an equity investment in the Force India Formula One Team, India's only F1 team.

"Subsequent to subscribing to new shares, Sahara India Pariwar will be investing approximately USD100m into the Force India Formula One Team. With this investment both the Sahara India Pariwar and Dr Mallya will own 42.5% each in the team. The Mol family's equity will be at 15%."

Billionaire businessman Mallya strongly denied he was on the verge of selling his team in a statement released in response to media speculation prior to last weekend's Japanese Grand Prix.

But at a joint press conference in New Delhi on Wednesday afternoon, Mallya painted a very different picture of the future of the team, with Sahara's joint partnership heralded as the beginning of a new era of investment and strengthening.

Mallya, whose sporting portfolio also boasts ownership of the Bangalore Royal Challengers Indian Premier League cricket franchise, told a press conference: "It has indeed been a matter of pride for me to put India on the F1 map with Force India and raise the performance of the team to its current levels.

"The Sahara Group has played a very important role in the development of sport in the country and is an ideal partner to take the Force India F1 Team to greater success in the Formula One World Championship."

Sahara India Pariwar chairman Subrata Roy Sahara, who also becomes chairman of the re-named team, added: "India is reaching new heights in all spheres, including sports. Formula One racing has always remained a bastion of the western world. The advent of India in this exciting sport has remained a matter of pride for all our countrymen."