Tuesday 18th November 2008

Breaking News: TID Buys 40% Stake in Prodrive

Aston owner Investment Dar Company buys large stake in motorsport company

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Kuwaiti investment company, The Investment Dar Company (TID), has acquired a 40% stake in technology business Prodrive. Prodrive is based in the UK with operations in Australia and the Asia Pacific region.

Prodrive chairman, David Richards, said: ‘Although we are best known for running motorsport programmes for Subaru and Aston Martin, we also work with vehicle manufacturers to develop new technology for the road.  This investment follows a year of planning, during which time we have identified a number of opportunities to expand our motorsport and road car activities.’

This investment comes at a time when vehicle manufacturers are facing the immediate challenge of difficult trading conditions and the longer term technological challenge of reducing CO₂ emissions. 

Richards added: ‘Our business is ultimately about helping our customers to sell cars, not only their current models, but future products as well.  I see a great opportunity to expand our current work developing the new generation of environmental technologies such as hybrid cars, hydrogen fuel cells and variable compression ratio engines.  With our unique motorsport approach, we can rapidly take these technologies from concept to reality.’

In 2007, David Richards led a consortium which saw TID acquire Aston Martin from Ford and Richards become chairman of the company.  Richards said: ‘Through Aston Martin, I have worked closely with TID for the last two years. As a result TID has also gained a great insight into Prodrive’s expertise and our culture. They very much share our vision for the business and the passion for what we do.  With their experience and understanding of the motor industry, they will play a significant role in the long term development of the business.’

David Richards will remain the majority shareholder in Prodrive, and as part of the agreement, Mahmoud Samy from TID will join the board of the company. Samy said:  ‘We have followed Prodrive’s success through the Subaru and Aston Martin motorsport programmes and seen the commitment and dedication of all the employees in every aspect of the business.  Prodrive has a great heritage and David has a clear vision for growing the business.  We look forward to working closely with David and his management team to realise their goals.’

[Lord Snot]

What is going on with Prodrive entering the F1 championship after the customer car debacle?

[fastgerman.com]

Hmmm should I buy shares.....

[Stuart J]

Looks Like Daves putting some dosh away for his retirement

Edited by Stuart J on Tuesday 18th November 13:21

[FourWheelDrift]

Lord Snot said:

What is going on with Prodrive entering the F1 championship after the customer car debacle?

They're not entering now.

[sdd]

fastgerman.com said:

Hmmm should I buy shares.....

in what exactly............?

[456lbft]

Stuart J said:

Looks Like Daves putting some dosh away for his retirement

Edited by Stuart J on Tuesday 18th November 13:21

Hopefully he'll be putting some towards paying his suppliers.

[TDIPLC]

Prodrive is an outstanding business and a credit to the UK automotive industry.

[fastgerman.com]

sdd said:

fastgerman.com said:

Hmmm should I buy shares.....

in what exactly............?

Was only kidding, don't have funds to gamble. Just checked they are listed on various online share dealing sites but no costs associated with the shares so assume they have not floated.

[Xaero]

Is this good or bad news? I can't make it out. As long as Prodrive stay the same it can only be good news surely?

[cardigankid]

FourWheelDrift said:

Lord Snot said:

What is going on with Prodrive entering the F1 championship after the customer car debacle?

They're not entering now.

Sensible people. May as well burn money.

Good news - means that an outstanding UK company has got some serious funding to see it through a difficult period. What they should do now is buy Lightning Cars and make that work and happen.

Edited by cardigankid on Tuesday 18th November 17:35

[456lbft]

TDIPLC said:

Prodrive is an outstanding business and a credit to the UK automotive industry.

They have got fans in high places it seems. HRH Prince Philip is having a tour at the end of the month.
http://www.banburyguardian.co.uk/news/Queen-to-vis...

[coleo]

More money in the pot so this has to be good news. But I rather hope no more is sold off and that Richards maintains his majority share and a British stake shall remain in the firm.

[BigE1967]

I hope that the new investor will somehow influence management to produce the P2 that was featured on Top Gear a while back.........

[chippy17]

TDIPLC said:

Prodrive is an outstanding business and a credit to the UK automotive industry.

another UK company consumed by Arabs

anyone know the turnover of Prodrive?

[j123]

Maybe now Podrive can actually make a car of their own- think P2!
Getting very tired of seeing prodrive editions of Impreza's. Fact is
I'm not sure if any Prodrive modded car was ever better than the Jap
spec C or any Litchfeld car. All that talent and no cars for mortals. Pity.

[TDIPLC]

chippy17 said:

TDIPLC said:

Prodrive is an outstanding business and a credit to the UK automotive industry.

another UK company consumed by Arabs

anyone know the turnover of Prodrive?

There are several individual business within the group. The holding company turned over £98mil in the last reported period.

[Raph C]

Good news for DR only. He is probably pocketing in excess of 100 million pounds.

As for the UK, I am afraid, it is another company almost owned by foreign investors. It follows a trend and is ultimately bad news.

[JHS]

i dont like the sound of this

[dpbird90]

456lbft said:

TDIPLC said:

Prodrive is an outstanding business and a credit to the UK automotive industry.

They have got fans in high places it seems. HRH Prince Philip is having a tour at the end of the month.
http://www.banburyguardian.co.uk/news/Queen-to-vis...

I wonder if they will give him a go in the Aston DBR9? I didn't get a go, but I got some great pictures of the 2007 Impreza WRC

[bobbylondonuk]

What people dont realise is....there is nothing wrong with arabs or indians etc acquiring Companies here. None of the products would sell without the british figure heads, technicians and continued success in the areas that define the business reputation.

What these foriegn investors bring in is liquid finance for the company in current economic climates. Lets face it...they wont get that from anywhere else but the arabs and other cash rich investment companies from the east.

IMO the opinion of calling jaguar an indian car , prodrive subaru an arab car etc...is nonsense. IT doesnt define the product or the ideas or the workmanship involved. None of these are arab or indian...only the money!