The Midland Group of Companies has announced the sale of 100% of its shares in Midland F1 Limited to Spyker Cars NV ("Spyker").
Prior to the sale, Midland F1 Limited headed all Midland Group motorsport activities, including ownership and operation of the Midland F1 Racing team ("MF1 Racing"), which competes in the FIA Formula 1 World Championship.
"The decision to sell the team has been one of the most difficult I have ever faced," stated Midland Group Chairman Alex Shnaider. "It is never easy to relinquish something into which one has devoted so much energy and passion. However, as much as I had hoped to witness the continuing growth of the team under our ownership, I truly believe this transaction is in the best interests of everyone involved - Midland Group, Spyker, and the team.
"I am proud to be leaving the team in a much better state than it was when we acquired it 20 months ago. Not only is it more financially stable, it is also more competitive at the track, and getting stronger all the time. The creation of the 2007 car is well underway, as are major upgrades to the wind tunnel facility. Investment into the team's technical development has continued unabated throughout the season.
"At the moment, Formula 1 is a much more mature and understood sport in Holland than it is in Russia. I believe the new owners will be well placed to exploit the commercial and nationalistic aspects of a Dutch identity, and this is something that can only benefit the team.
"My partner, Eduard Shifrin, left the decision entirely up to me, since he knows how important it is for me to see the team not only survive, but succeed. With this in mind, the new owners have demonstrated their ambitious plans to take the team forward to the next phase of its rebuilding programme.
"Spyker, headed by Victor Muller and Michiel Mol, consists of a strong group of investors with the resources, planning and capacity to further develop the team. I am confident that under their leadership, the future of the team rests in good hands, and I would not have agreed to this sale under any other circumstances.
"Midland Group and I have been committed to the team's success from the moment we decided to take it on. We have always been, and will continue to be, Formula 1 fans, and we wish the sport, the team and its new owners the greatest success in the future."
In October 2004, Midland Group`s involvement in Formula One began when Mr. Shnaider confirmed his plans to lodge an entry for the 2006 season.
Although initially committed to the idea of creating a completely new team for the 2006 season, Midland instead signed an opportunistic deal to buy the Jordan Grand Prix team shortly prior to the 2005 Formula 1 season. As a result, the team competed as Jordan Grand Prix in 2005, and re-branded itself as MF1 Racing for 2006.
"The time-line was tight, but by buying Jordan, we benefited from having a ready-made team: the people, the facilities, the know-how - all the elements we were previously looking to piece together from scratch," recalls Mr. Shnaider. "Entering the sport a year ahead of schedule was easier to execute with an established team, although it still presented us with a steep learning curve in 2005. But that's OK; we learned a lot during the transition."
