CNBC-TV18 has learnt that Vijay Mallya is closing in on the Spyker Ferrari deal. Sources said that the Mallya-Spyker Ferrari deal is almost final and will be announced shortly.

According to sources, the Spyker Ferrari Board has approved Vijay Mallya’s bid. Vijay Mallya will invest in Spyker Ferrari in personal capacity.

The branding option for Spyker Ferarri is open to the Kingfisher or UB Group. 

Kingfisher will continue to sponsor the Toyota Panasonic F1 team. Spyker had acquired the Midland F1 team for USD 106.6 million.

Vijay Mallya's bid for Spyker Ferrari is at a reasonable premium, stated sources. CNBC-TV18 had reported on this deal on August 28.

The king of acquisitions has picked up a Formula One team, making him the first Indian to ever do so. F1 history has been created from an Indian point of view, said analysts.

Spykar Ferrari is a Dutch carmaker and is listed on the Dutch Stock Exchange. Spykar Ferrari is a team that has seen a spate of buyouts. In fact, Spykar had bought out the F1 team from Midlands in 2006 and now Vijay Mallya has come in and picked up a controlling stake in the company.

The Spykar Ferrari board has backed Mallya’s bid. Spykar had paid USD 106.6 million to pick up the team from Midlands, which was earlier owned by Jordan.

It is understood that Vijay Mallya’ bid is at a reasonable premium to USD 106.6 million. He is investing in his personal capacity, so it is not UB Group company or Kingfisher Airlines that is picking up the F1 team. It is Mallya investing in his personal capacity.

 Kingfisher will continue to sponsor the Toyota Panasonic F1 team and that association is expected to continue.

Spykar Ferrari is a low ranked team and it is called a ‘backmarker’ on the F1 circuit because of its underperformance. But in F1, it is not just about your racing skills and abilities, but also about the money.

Spykar Ferrari has been financially strapped, but with Mallya coming in Spykar Ferrari’s fortunes could change.

Earlier, in Istanbul, Vijay Mallya had said about the likelihood of the deal, “As far as I am concerned, nothing is impossible. Part and parcel of bringing F1 to India is to also have an Indian company involved in F1. In what form or shape, I am not going to disclose as yet,” said Vijay Mallya, Chairman, UB Group.

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