Genii wishes to retain Lotus

If rumors of a Lotus sale had circulated in the paddock during the 2012 season, Gérard Lopez now claims that he never intended to sell the team that finished fourth in the constructors’ championship.

At the beginning of the season, it was learned that the manufacturer Proton, owner of the Lotus brand, had an option to buy 50% of the team’s capital of which it was only the title sponsor.

Nevertheless, the Malaysian group’s financial health did not allow it to continue its investment. Genii Capital, the investment fund owning the team, therefore decided to withdraw this option granted to Proton, which also terminated its sponsorship contract with the team. However, the team retains its current name in order to maintain the television rights associated with its impressive fourth place in the constructors’ championship.

By regaining its freedom, Genii Capital can establish new relationships with new partners. A new title sponsor could therefore emerge in the coming weeks or months. In December, the media was abuzz with speculation about such an agreement with the American petrochemical company Honeywell. No new information has since emerged to fuel this rumor, although the team might choose to wait until the winter tests or even the first race in Australia to make an announcement in order to maximize its media impact.

Gérard Lopez, the head of Genii Capital, has decided today to reaffirm his commitment to Lotus, with the Gazzetta dello Sport: « When we bought the team we had 75% of the shares. Then, we went up to 100%. But we have always said that if other investors want to buy some shares, we are ready. I never wanted to sell the team because for me, for Genii Capital, F1 is a very beautiful platform to develop our business. With sponsors, we discuss not only advertising on the car but also business in a broader sense. »

It must be acknowledged that the strategy implemented by the Luxembourg investment fund has been effective since it managed to sign multinationals (Unilever, Microsoft, and Coca-Cola) during the past season, which had never been involved in F1 before. It has also been active in terms of one-off actions, as demonstrated by its associations with Batman, Angry Birds, and Star Wars.

However, in the business world, especially with investment funds, one should never say never. Thus, Vijay Mallya had stated that he had no intention of selling Force India… four days before selling 42.5% to Sahara. It is therefore highly probable that Genii Capital will maintain its investment as long as the return on investment meets its standards. If the team were to progress further up the hierarchy during the 2013 season, its value would only increase…

With the participation of www.Racingbusiness.fr