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F1: Uralkali sues Force India for selling the team to Lawrence Stroll

Kredy
ANALYST
Feature
Modified 20 Dec 2019, 18:57 IST

F1 Grand Prix of Singapore
Force India was sold to Lawrence Stroll earlier this year

Controversy continues to surround the Force India team even after the entire administration saga that saw its sale to Canadian billionaire Lawrence Stroll, father of the current Williams driver Lance Stroll.

According to Reuters, Russian potash producers announced legal action against the administrators of Force India on 27 September 2018 over the team's sale to Lawrence Stroll-led consortium.

Uralkali initiated the legal proceedings against FRP Advisory in London's High Court. The company claimed that their bid was rejected because of the "prejudicial and the unequal treatment" of the company. The company even went on to say that the entire sale process was flawed.

Interestingly, the co-owner of the Russian company Dmitry Mazepin is the father of Nikita Mazepin, who currently plies his trade as a development driver for Force India.

Uralkali is one of the largest fertiliser companies in the world, which sells its product to over 60 countries. The company is associated with Force India for a considerable amount of time and is one of the sponsors of the upcoming Russian Grand Prix at Sochi.

The company said that the winning bid by the Stroll-led consortium was lower than the very generous offer made by Uralkali. According to the Russian corporation, the offer included a cash consideration of between 101.5 and 122 million pounds along with a payment of 40 million pounds to Force India's parent company, Orange India Holdings Sarl.

Senior independent director of Uralkali Paul Ostling said, "We had a strong business case for acquiring Force India, and we believe our bid was the best one tabled."

“We have serious concerns as to why the Administrators did not use the opportunity to maximise the amounts that could have been paid to creditors and shareholders,” he added.

However, the administrators of Force India insisted that Stroll's consortium was the only party to submit a rescue proposal and are confident that the claim would be dismissed at the earliest hearing.

Published 28 Sep 2018, 02:10 IST
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