Sahara buys stake as equal partner in Force India

With just 19 days to go for the inaugural Indian Grand Prix, Formula One team Force India will be renamed as Sahara Force India after the team's chairman Vijay Mallya sold part of the stake in his team to the chairman of Sahara Group Subrata Roy on Wednesday.

A deal between the two business tycoons was inked in the evening, after which Mallya addressed the media on Wednesday. Sahara bought 42.5% stake, worth USD 100 million, which means the Force India F1 team will now be co-owned by Mallya's UB Sports and the Sahara Group, with both owning 42.5% equity each.

The remaining 15% will be with the Mol family.

Mallya will continue to be the Team Principal.

Reports earlier in the day had suggested that Mallya was in talks with the Sahara Group to sell team Force India, but he had repeatedly declined the reports, saying, "I was shocked to read a media report that I am selling the Force India Formula One team. This is completely untrue and without any basis whatsoever. As Team Principal, I will continue to run the team and I have no plans whatsoever to exit."

"I take great pride in having been able to put an Indian team on the Formula One World Championship grid and have worked very hard to greatly improve the performance of the team."

"Now that India is finally on the Formula One World Championship calendar, my commitment to Force India only gets even stronger."

Liqour baron Mallya had bought the Spyker Ferrari F1 Team in 2007, reportedly for about for 90 million Euros. He then renamed the team as Force India in the 2008 season.

Force India are currently at sixth position in the Constructor's Championships with 48 points, behind Renault.

Mallya also owns IPL team Royal Challengers.

On the other side, the Sahara Group has interests in financial services, real estate, media and hospitality, and is a major promoter of sports in India.

Sahara owns the new IPL team Pune Warriors India and also sponsors the India national cricket team. It had also supported the Indian national hockey team.

India will host its first Formula 1 Grand Prix on October 30, 2011 on a 5.14 km track in Greater Noida, built by Jaypee Sports International (JPSI).

The new-look Sahara Force India is likely to make its debut at the inaugural Indian GP.