After months of negotiations, Tom Walkinshaw has finalized a deal that will move ownership of Arrows to Nigerian Prince Malik Ado Ibrahim and finance investors Morgan Grenfell Private Equity in an effort to secure a short-term future and help enable a long-term one.
The deal sees former owner Jakie Oliver entirely bought out, Walkinshaw retains 25% in the team, and speculation over a Zakspeed take-over along with a move from Oxfordshire to Cologne is now eliminated.
Prince Malik will own a 25% share and be active in team marketing; Morgan Grenfell Private Equity will have a substantial 45% stake but will remain inactive. The remainder of shares will be reserved for Arrows management and employee incentives.
Walkinshaw stated, "with the design of our own car, engines and gearbox, plus the marketing and financial expertise now on board, Arrows Grand Prix can aim to take the next step in Formula One."
Danka, their title sponsor in 1998, is experiencing current financial difficulties. A new title sponsor is expected to be announced soon. Mika Salo is already committed to the team for 1999. Toranosuke Takagi is expected to be his team-mate.