Gerard Lopez’s Genii Capital to buy into Group Lotus?

Gerard Lopez’s Genii Capital to buy into Group Lotus?

The latest rumours surrounding Group Lotus, which is a fully owned subsidiary of Proton, is that Genii Capital will be buying into the sportscar maker. Headed by Gerard Lopez, Genii Capital is the owner of the Renault F1 Team (Lotus Renault GP), which of course has Group Lotus as title sponsor.

Autosport reports that its high level sources have revealed that Lopez/Genii Capital has held advanced talks with Proton about taking a management and financial interest in Group Lotus, which could even go as far as Genii taking a majority stake!

It’s not common knowledge, but Genii and Proton have always been talking. “We have an agreement with Proton and are working a number of things with them, including opening certain geographies in terms of platform, like Russia for instance,” Gerard Lopez told this website in an interview early this year (read the interview in full here).

Gerard Lopez’s Genii Capital to buy into Group Lotus?

In that same interview, Lopez did not rule out getting involved in GL, even back then. “I think they have a good shareholder with Proton. For sure, that is something also that we will be looking at, but it’s not anything that is urgent. No, I wouldn’t rule it out. I never rule anything out,” he said.

When asked about the latest rumours by Autocar UK, Group Lotus CEO Dany Bahar did not deny it outright. “I can only say this: When we made the announcement about our involvement in Lotus Renault GP we made it clear that this was the start of a close relationship and this journey continues.”

As a recap, Group Lotus became title sponsor of the Genii owned Renault F1 Team late last year, leading to the F1 outfit racing in black/gold livery that recalls the Team Lotus of old. They signed a seven-year sponsorship deal, with Lotus having the option to take over 50% at some point in time.

Gerard Lopez’s Genii Capital to buy into Group Lotus?

Behind the F1 scenes, LRGP is now working on renaming the team to be just called ‘Lotus’, with Tony Fernandes’ Team Lotus changing names to Caterham, which is of course owned by the AirAsia boss.

Motorsports has always been one of Group Lotus CEO Dany Bahar’s main strategies to elevate the brand to fight the likes of Ferrari and Porsche, and it was never in doubt that they wanted to be more than just a name on the wing.

“Our way of doing things means that at the end of the project we would like to control it ourselves. It’s the same route – it starts somewhere and then you slowly take control. We would not be in for the long-term just to be a sponsor on the team,” Bahar said then.

So, if all these comes true, we could be seeing a marriage between Genii and Lotus – GL takes a stake in the team, and Genii buys into the carmaker. It remains to be seen if they live happily ever after, though.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • drMpower on Oct 10, 2011 at 5:10 pm

    theres a big difference in buying into and holding majority
    but i guess these genii people dont really interested in becoming second
    so they are looking into buying lotus althougether

    if proton is selling
    then its the end of a great ownership of a great brand
    i dont know about whats next for proton
    because if they sell it, i cant see any for that matter

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    • Protong on Oct 10, 2011 at 8:55 pm

      Just sell Lotus away but take the right of “Lotus Ride & Handling” for Proton

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      • drMpower on Oct 11, 2011 at 1:25 am

        haha
        nicee

        but really, what i dont understand is why the technology transfer from lotus to proton either too little or too late
        yes the GTi was the first to be tuned by lotus and it was just 2-3 years after aquisition by proton but after that i havent heard anything else
        apart from the EMAS thing this year or before and of course the range extender

        i understand on why they didnt bring back lotus lock stock n barrel
        but getting some knowledge by sending our people there and enhance RnD should be no problemo
        i know some our guys were sent there
        but wheres the output?

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  • mfahd_88 on Oct 10, 2011 at 5:19 pm

    hopefully the G and the stakeholders will never and ever allow foreigners to take over one of our ultimate national treasure

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    • LOLED HARD on Oct 10, 2011 at 6:25 pm

      hahahahaha.. our ultimate national treasure for the win!

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  • aduss3 on Oct 10, 2011 at 5:20 pm

    The latest rumours!!!! just rumours.. but plzz don’t sell it..

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  • sudahkena on Oct 10, 2011 at 5:28 pm

    haha, clever Dany Bahar, syphon all the money out of Proton pocket make network with big guys in europe, then when Proton cannot handle/afford fudning any further, ask someone else to buy out from Proton! very clever.

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    • Lol.. so true.. and Proton would probably get back what they invested, mind that there are still interest rate to pay.. hahahaha

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    • M'sian Salvatore on Oct 11, 2011 at 1:51 pm

      Proton Board of directors all r foolish. 1st his ceo conned them to pick a war with their F1 countryman partner, Tony Fernandes which he is a genius in doing business. It is too late to realise that their Turkish ceo cannot be trusted and that y his bullshit been expelled from ferrari & red bull. u hire rubbish, u end up being rubbish. Congratulation proton for damaging serious the Lotus name in F1 arena and had been lose twice in high court to Tony Fernandes original Team Lotus. now been conned nicely perfectly as planned by his own ceo. Proton memang TAK BOLEH as expected!
      hey, idiots! do u hv any fund and plan to take your turkish ceo to court??!! haha

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      • Uzair on Oct 11, 2011 at 5:32 pm

        Errr… excuse me. FYI Dany Bahar is an italian.

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        • M'sian Salvatore on Oct 12, 2011 at 1:10 am

          u is another idiot don’t do homework. u can go google search or wikipedia. he is born at Taner Bahar 1971 in Istanbul, Turkey. Do him look italian to u?? NAH!! Everything that love F1 know he is turkish.

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  • seriusSAM on Oct 10, 2011 at 5:34 pm

    LOL

    better sell lah…. lately it seems like Bahar have more control over GL than PROTON
    where’s PROTON just milking money from Gomen to fund Bahar Formula 1 dream and his delusion for LOTUS to become FERRARI

    LOL

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  • Dak Ajan on Oct 10, 2011 at 5:42 pm

    Do u believe in this..??
    It happen before to LRGP bout out of cash..
    Now, about proton selling lotus.
    Proton via G help lotus to secure fund for 5 years lotus plan..
    Haha… Someone playing harsh..

    Like or Dislike: Thumb up 0 Thumb down 0
  • xptmsb on Oct 10, 2011 at 6:18 pm

    eeerrr rugi la kalau jual.. mau beli balik bukan murah!!!

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  • mmouse on Oct 10, 2011 at 6:56 pm

    Yeah, Danny Bahar is going to incurr massive losses and let Proton sell it eventually for USD1.00. They did it before. So what is new?

    Like or Dislike: Thumb up 0 Thumb down 0
    • the MV AGUSTA deal is different u crap… read b4 u post anything…do some research…MV AGUSTA is sold for 1 Euro with all the debt more than 200 Million Euro…

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  • makeitmine on Oct 10, 2011 at 7:06 pm

    I smell a rat!!

    Proton, don’t fall into the same trick again.. Genii Capital is BUYING ON BEHALF OF THEIR CLIENTS. Only interested in Lotus Group now to be sold later to the highest bidder.. GM, BMW, VW, etc or Chinese/Korean car manufacturer.

    Here is what is printed clearly from their website:

    Genii Capital is taking on mandates for large deals with global reach, guiding and advising clients and playing the role of INTERMEDIARY between sponsor and project, between government and investor or between borrower and investment bank. Genii Capital has therefore created a unique position for itself, in which it is capable to add value to each deal or investment.

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    • JasonT on Oct 10, 2011 at 10:45 pm

      Those people in Proton better think properly before selling even 1 share to those guys. Without Lotus, Proton will be difficult to sell internationally. Whether those guys are intermediaries or not, once you let them in Proton will lose control.

      Another thing though, first they ask our Government to help lobby for funds and now they are trying to convince Proton to share Lotus with someone else? I thought with all the bank loan funds, Lotus should be able to stand by itself? What can this Genii Capital contribute? Tech or what? Better be careful on this.

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  • teamsleepnine on Oct 10, 2011 at 8:10 pm

    Pls..pls…pls…don’t sell…

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  • Expatriate VN on Oct 10, 2011 at 9:20 pm

    Quickly sell, don’t know how much monies dump in until now no tangible orsignificant contribution to P1!

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  • Charles on Oct 10, 2011 at 10:25 pm

    But at a nominal price from proton and resell at a later date for a huge profit = winrar. History repeats itself. Bunch of bungling proton idiots.

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  • Naim1M on Oct 10, 2011 at 10:56 pm

    harap2 YAB Perdana Menteri jgn jual Lotus! kalo tidak kita kehilangan teknologi handling kat kereta proton niee…. :(

    Like or Dislike: Thumb up 0 Thumb down 0
    • Ambil semua blueprint dan resepi rahsia before jual..pastu kalau nak jual, jual la..haha..( but pleasee..don’t sell it oh for goodness sake!)

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  • vvipkho on Oct 10, 2011 at 11:12 pm

    Proton will not sell it to Lopez, now most proton car is use Lotus Technology ..

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  • well if genii (or whoever they represent) can bring in much needed $$ for the ambitions GL have, then perhaps its better for proton. i don’t think proton need to own 100% of GL.

    maybe sell 25-30% and get some money back. we hope the valuations reflect the years of support, capital injections and loan guarantees that were extended by proton.

    jgn jual murah la. this is where proton must stand firm.

    about danny bahar,… lately he has been rather audacious when talking about selling GL. i think he should put his head down and concentrate first on delivering his promises to proton. he is an employee of GL and GL is wholly-owned by proton…someone shoud gently remind him that fact!

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  • makeitmine on Oct 10, 2011 at 11:31 pm

    My guess is that Lotus Renault GP is 100% owned by Genii and Group Lotus bought the shares of Lotus Renault GP by swopping the shares of Group Lotus.

    If this is true, what Danny Bahar has done is mischievous.He created a hole in Group Lotus for it to be acquired in the future. But the world does not need the Lotus Brand. The Lotus brand does not really sell many cars.

    I think the best thing Proton/Group Lotus can do right now is show Danny Bahar the door. His grandiose plans for both the road car and racing sides of the business seem to have no basis in the real world, and I believe that ultimately he’ll do more harm than good to the company.

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    • Manoq on Oct 11, 2011 at 11:49 am

      makeitmine …………

      I you really believe that, then don’t just stop here. Make sure you write a letter to the PM and Proton and then, sent copies to all major newspapers and alternative medias.

      Also, 1 copy to your MP as well o that he/she can bring the matter to the Parliament.

      Put in some facts and figures as well. Don’t forget to put your real name so that Danny Bahar or Proton can sue you if what you claim is baseless.

      Otherwise, stop all these nonsense as if you know things…..

      Manoq.

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      • makeitmine on Oct 11, 2011 at 1:08 pm

        Manoq, you made me lol.. I don’t even own Proton shares.. what business have I to bring the matter to Parliament.

        There are sources revealing that Dany Bahar may have mentioned and considering to separate Group Lotus from Malaysian parent Proton, which has owned Lotus since 1996.

        Bahar believes that in order to move Lotus forward, they would preferred to tie-up to a larger global automaker, such as Toyota or Volkswagen, through either an alliance or selling their company’s stake. A small company like Proton is not good enough hence he would prefer a giant global automaker, to provide funds and technology to bring Lotus into the same league with Porsche and Ferrari. Also, he did suggest the company could be spun off, floated and publicly traded.

        Group Lotus could not afford sponsorship in F1 due to : 1.) they still a money losing company and 2.) Proton don’t have much money. In early 2011, a consortium of six financial institutions has pledged and approved a loan package worth £270 million to Group Lotus for their plans.

        So I believe Group Lotus bought the shares of Lotus Renault GP by swopping the shares of Group Lotus. And the days for Group Lotus to be acquired are numbered and Proton will be back in the good old days assembling vehicles for Mitsubishi.

        About the EMAS Global car project.. if is a planned failure.. Group Lotus will definitely be sold at much earlier date even before the new Lotus models are delivered.

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  • bobdbilder on Oct 11, 2011 at 6:55 am

    If Genii Capital can see the value of the brand Lotus and opening doors to Russia; an emerging market full of oil and gas oligarchs, by all means; yes. It is an opportunity for market expansion. The funding of the 5 year plan has already been secured by local sources. So this comes ontop of that. If Genii comes in, they would own the liabilities too. They would need to get double price if they want to make a good sale. But I don’t think that’s the case.

    2013 is not far off for the new models and its heartening to note that there are people out there that believe in Lotus’s turnaround plan.

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  • Just get rid of Lotus….focus on your underpaid staffs…now gomen staff makes more money than Proton’s engineer…many are leaving….but Proton pays up to 20K to Lotus engineers…wasting….demotivating….hire better consultants such as LG…be a pro…don’t bask in Lotus glory and keeps on losing money….instead of wasting billions on Lotus, plow that money and make more and higher quality cars…Hyundai and Kia don’t buy Ferrari….they can do it…we can do it too but conserve our cash flow….just my opinion coz I used to be that underpaid Proton engineer…good company but cheapskate because of wrong priority

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  • donno on Oct 11, 2011 at 10:03 am

    After Malaysian taxpayers (via proton) has sunk so much money into the bottomless pit called Lotus (look at the latest dip in profit for proton caused by lotus); now a foreign group will will buy into lotus and reap all the rewards??

    WTH??

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  • Jaybond on Oct 11, 2011 at 11:53 am

    Perhaps Proton should look into selling part of the stakes in GL to Genii. It would be a waste of years of investment & work if Proton decided to sell it whole. Joint Ventures with Genii could be the next logical step to bring in fresh capital injection to push the forward the GL plan for the future.

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  • for me..I personally think PROTON should let go some of share at Lotus to them…but not all, but at least 51%…and Keep Lotus and Handling…if possible!!

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  • littlefire on Oct 11, 2011 at 2:27 pm

    Paul, ur blog didnt report the real thing…

    http://www.themalaysianinsider.com/business/article/proton-close-to-selling-lotus-stake-says-uk-mag/

    Group Lotus is 100 per cent owned by Proton and is currently in the midst of a five-year turnaround plan which could see the company continue to make losses for the next two to three years.

    Proton’s net profit had slumped 94.6 per cent to a mere RM4.55 million in the first quarter ending June 30, 2011, from RM84.68 million over the same period last year, due mostly to the higher expenses incurred by Lotus

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  • ezracopters on Oct 11, 2011 at 4:53 pm

    well..

    i see no harm here, since proton own 100% GL, JV is the way to go these day. selling off to Genii even ie. 49% still wont deny Proton as majority stake holder. but, these guys Genii is a professional negotiator, lobbying and matching and strategist business planner. there is no guarantee that in the future they will stay loyal to proton as business partner and driving GL more onto their interest ather than mutual agreement, ie Proton-Air Asia, Mas-AirAsia.

    but of coz since i am Malaysian, i would like to see Lotus forever fully own by Proton, hehehe.

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  • makeitmine on Oct 11, 2011 at 8:33 pm

    I personally don’t think Genii has the money to buy Group Lotus.

    Renault F1 team made £40m loss in 2010. Read here
    http://adamcooperf1.com/2011/07/20/renault-f1-team-made-40m-loss-in-2010/

    If Genii don’t repay the money owed in December 2011, ownership of the team may be transferred to the bank. So the bank will own Group Lotus later (should Genii own it first) and can sell Group Lotus to anyone they like.

    Proton, watch your back!! All your joint collaborations with Mitsubishi, Nissan, etc. will worth nothing but pieces of paper as these joint collaborations expect some input/expertise from Group Lotus.

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  • hakim on Oct 11, 2011 at 8:47 pm

    Where are all the Proton Basher? no comment?

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    • M'sian Salvatore on Oct 12, 2011 at 1:29 am

      Here is my bash comment below since u can’t even identify the bashing comments up there properly. Poor lah “judge” ni! i guna Bahasa melayu supaya anda mudah difahami kerana takut u tak faham pula susah semua pihak.
      Bagus lah Proton jual kat orang lain dapat jimat lagi million2 billion2 duit susah rakyat kita. Lagi pun Proton memang TAK BOLEH punya! simpan 18 tahun begitu lama pun tak tau guna & majukannya. Jual kan tony fernandes lagi bagus. Bodoh betul lah kena conned oleh their Turkish ceo pun tak sedar lagi. Pick a war on Tony fernandes (international recognition successful businessman) yang dapat banyak membantu bawa balik Lotus masuk F1 kembali ke dunia motor racing pun tidak dihargai tapi dimusuhi. Orang yang tak pernah hargai orang lain macam itu lah style balasan diterima. Sebab tu lah kalah 2 kali kat high court kepada Tony’s Team lotus yang asli. Sekian, terima kasih.

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      • wahhh…org bodoh pun leh comment ek… boleh blah la, kalu xsuka proton jgn beli.. xda org paksa… so if u think without Proton the taxes for foreign car will be cheaper, u re totally wrong…u ingat Government bodoh ka…now they are getting hundred of million from car taxes…u think they what it just disappears… dah BODOH…jgn nak tunjuk PANDAI…

        Tony Fernandes (international recognition successful businessman)?? he is a no 1 thief… if a good business man wont make his make his company in 7 Billion in debt u IDIOT… @ u mmg xblajar economy… cakap mcm pandai…

        “yang dapat banyak membantu bawa balik Lotus masuk F1 kembali ke dunia motor racing”… ini satu lagi kenyataan bodoh… u ni mmg bodoh ke apa?? LOTUS mmg terkenal dlm F1, tak perlu this white collar so called business man nak tolong…crap and blind basher….

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        • BIGGEST JOKE OF THE YEAR on Oct 12, 2011 at 11:20 pm

          I’m officially nominate aLy as the joker of the year 2011

          well done

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          • M'sian Salvatore on Oct 13, 2011 at 9:14 pm

            Agree with u! aLy ada bakat jadi journalist in UTUSAN MALAYSIA. semua orang pun tau lah Tukang fitnah & penipu newspaper pandai tulis sampah yang berdosa. i nampak aLy ada banyak ciri2 persamaan.

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    • peyno on Oct 12, 2011 at 11:37 am

      imagine no lotus rides in any protong model segment….handling like a shite same with p2..amacam protong fanboy? want to get rid lotus??!!!

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  • F1 Renault Lotus has not been performing well
    in fact they are getting from bad to worst !!
    Just look at the last 3 races…Pathetic !!
    And Proton is stuck with them for the next 7 years? Good Luck !!
    Perhaps it would be wiser to hive off Lotus and only pay them for their
    technical support and expertise. At least you won’t be burdened with
    paying Dany and his team inflated salaries and don’t forget Lotus
    needs another 120mil pounds for its future plans.

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