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Alpine F1 Team has struck a deal to sell its 24 per cent equity to secure INR 1787 Crore (USD 218 million) from investors to support their growth process and sporting ambitions in the near and foreseeable future. Maximum Effort Investments, an investment group led by Hollywood star Ryan Reynolds, the co-owner of Wrexham AFC alongside Rob McElhenney, and co-investor Micheal B. Jordan, has joined hands with Otro Capital and RedBird Capital Partners to take over nearly one-fourth stake of the England and France-based Formula One team.
On June 26, Monday, Renault, the parent company of the Alpine F1 Team made an announcement regarding the deal which has put the overall value of the auto racing team at around INR 7383 Crore (USD 900 million). In the Constructor's Championship, they are currently placed in fifth position, looking to improve their standing as the 2023 Formula One season goes on.
It has been reported that the new investors will be spending their money on the Alpine F1 Team’s base in Enstone, England. Meanwhile, the engine manufacturing activities at the base in Viry-Chatillon, France, will remain in the hands of Renault with 100 per cent ownership.
The CEO of Renault, Luca de Meo, in an interview to the F1 website talked about the investment deal for Alpine F1 Team. He was quoted as saying, “Formula 1 and Alpine are strategic assets for Renault Group. Over the past two years, we have re-ignited Alpine, capitalising on its iconic A110 sports coupe, boosting it by entering Formula 1, where it aims to become a championship contender. This partnership will accelerate Alpine F1 development by diversifying revenue drivers and increasing brand value.”
The 56-year-old Italian also mentioned the possibility of enhancing the sporting performance of the Alpine car in the long run. Luca de Meo said, “This association is an important step to enhance our performance at all levels. First, Otro Capital, RedBird Capital Partners and Maximum Effort Investments, as international players with strong track record in the sports industry, will bring their recognised expertise to boost our media and marketing strategy, essential to support our sporting performance over the long term.”
“Second, the incremental revenue generated will in turn be reinvested in the team, in order to further accelerate our Mountain Climber plan, aimed at catching up with top teams in terms of state-of-the-art facilities and equipment,” he further added.
