Jordan Grand Prix Ltd, the UK-based company that operates Mr Eddie Jordan's Formula One team, yesterday announced that a group of un-named Irish investors had bought a 49.9 per cent stake in the business for a sum believed to be in the region of £15 million sterling (€21.2 million).
In a statement, the company said that a consortium assembled by stockbroker Merrion Capital had bought the stake, previously owned by bank Warburg Pincus. It did not reveal the names of the investors or the price paid for the stake, which was originally valued at £40 million.
However, a number of sources yesterday said that the bank would have parted with its stake for less than the sum it paid when it invested in Jordan in 1998. They said that the figure was likely to be in the region of £15 million. Formula One team values have fallen by at least two thirds since the late 1990s.
Jordan lies ninth in the 10-team world championship constructors' standings. Its drivers, Giancarlo Fisichella and Ralph Firman, have earned 13 points this season. Fisichella won the Brazilian Grand Prix in April.
The company is said to be in need of cash. The last available filing with the UK registrar of companies shows that it earned a profit before tax of £3.2 million on the back of a £68 million turnover in the year to December 12th 2001.
The company's balance sheet shows that its net liabilities had increased to £4.4 million from £761,000 in 2000, shareholders' funds had risen to £8.6 million from £6.9 million. Its cashflow statement showed a £12 million decrease in cash, compared with £5.9 million in 2000.
Commenting on the deal, Mr Jordan said he welcomed his new partners in Merrion Capital to Jordan Grand Prix.
News of the sale sparked speculation that the investors included a number of Irish business figures known to be close to Mr Jordan.
He is friendly with both Mr Dermot Desmond of investment company IIU and telecoms enrepreneur Mr Denis O'Brien.
