Genii resumes its process of selling Lotus shares
After the fiasco of the takeover by Quantum Motorsport, Genii Capital is looking for new investors. The investment fund has reportedly granted an option on 9% of the Lotus F1 team's capital to a law firm.
Since the purchase of the Renault F1 Team, Genii Capital has always stated that it was open to bringing in other investors but intended to retain its majority role.
In January, Gérard Lopez had announced that the Russian phone manufacturer Yotaphone had joined as a shareholder and sponsor of the team. The stake transferred at that time was 10%, which means that Genii Capital still held 88% of the capital.
But the transaction revealed today is of a different nature. Indeed, it was reportedly concluded on a total team valuation of $125 million, which is significantly lower than what the new shareholders had to pay for their stake since the price quoted for this 9% is $11.24 million.
The explanation for such a difference could be that the law firm JAG Shaw Baker brings more than just money to the stable. It might position itself as an intermediary to attract more sponsors to a team that has been in the spotlight for its financial difficulties during the 2013 season. This would be even more logical since the firm is specifically specialized in seeking investors and restructuring the capital of companies.
Furthermore, the firm is not yet the owner of these 9% as it only has a purchase option valid for six months. Therefore, it could decide not to exercise it if it realizes that the return on investment is not up to its expectations.
With the participation of www.Racingbusiness.fr
