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Release Date: 24/04/2003
TEGA Rejects General Motors Bid For Holden Racing Team!
Touringcar Entrants Group Australia Pty Ltd (“TEGAâ€) today rejected the formal application by Holden Ltd to the change of control of the Holden Racing Team (“HRTâ€) to General Motors Australia Ltd.
Holden purchased the shares in TWR Australia, the company that operates HRT following the receivership of TWR International.
While rejecting the Holden application, TEGA has advised TWR Australia that it must find a new owner that will be suitable to the TEGA Board by no later than 1 June or risk the termination of the license that allows the team to compete in the V8 Supercar Championship Series.
“The agreements that TEGA holds with teams that compete in the Series provide the Board with an absolute discretion to withhold its consent to the sale or sub-licensing of racing entitlements to an entity controlled by a company which is a vehicle manufacturer†said TEGA Chairman Kelvin O’Reilly. “We have exercised that discretion.â€
“The Board has been endeavouring to work through a number of issues with Holden since they advised us that they had purchased the shares in TWR Australia without applying for or receiving our consent†he said. “TEGA’s pre-emptive rights to purchase the licenses were also denied us through Holden’s purchase arrangements with the receivers of TWR International†said O’Reilly.
“Holden have stated that they intend to sell the licenses but at this time TEGA is not convinced that they are acting in a timely fashion suitable to us to rectify the situations in which they have placed themselves†said O’Reilly.
“The Board is of the view that this matter must now be resolved quickly for the benefit of V8 Supercar racing as a whole.â€
Prior to being advised that Holden had purchased the shares in TWR Australia, the Board of TEGA had asked its investigative body – the TEGA Tribunal to conduct an investigation into possible breaches of the Ownership Restrictions contained within the Teams’ License Agreement.
“The TEGA Tribunal has commenced its investigation into the concerns that TWR Australia may have or have had simultaneous interests in HRT, K Mart Racing and Paul Weel Racing – a total of six (6) cars that compete in the Championship,†said O’Reilly.
“If the investigation reveals a breach of the 4 car provisions of the teams agreement, the racing entitlements of the teams are required to be suspended while the teams licenses are sold†he said.
Following sale of the licences, teams found to be in breach of the ownership restrictions will be prevented from competing in the V8 Supercar racing until such time as the Board enters into a new agreement with the team.
Currently the Board policy of TEGA and AVESCO would see the person/s or entities who are the legal and beneficial owner of a Teams’ License not re-admitted to V8 Supercar racing for a minimum period of two years.
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Release Date: 24/04/2003
TEGA Rejects General Motors Bid For Holden Racing Team!
Touringcar Entrants Group Australia Pty Ltd (“TEGAâ€) today rejected the formal application by Holden Ltd to the change of control of the Holden Racing Team (“HRTâ€) to General Motors Australia Ltd.
Holden purchased the shares in TWR Australia, the company that operates HRT following the receivership of TWR International.
While rejecting the Holden application, TEGA has advised TWR Australia that it must find a new owner that will be suitable to the TEGA Board by no later than 1 June or risk the termination of the license that allows the team to compete in the V8 Supercar Championship Series.
“The agreements that TEGA holds with teams that compete in the Series provide the Board with an absolute discretion to withhold its consent to the sale or sub-licensing of racing entitlements to an entity controlled by a company which is a vehicle manufacturer†said TEGA Chairman Kelvin O’Reilly. “We have exercised that discretion.â€
“The Board has been endeavouring to work through a number of issues with Holden since they advised us that they had purchased the shares in TWR Australia without applying for or receiving our consent†he said. “TEGA’s pre-emptive rights to purchase the licenses were also denied us through Holden’s purchase arrangements with the receivers of TWR International†said O’Reilly.
“Holden have stated that they intend to sell the licenses but at this time TEGA is not convinced that they are acting in a timely fashion suitable to us to rectify the situations in which they have placed themselves†said O’Reilly.
“The Board is of the view that this matter must now be resolved quickly for the benefit of V8 Supercar racing as a whole.â€
Prior to being advised that Holden had purchased the shares in TWR Australia, the Board of TEGA had asked its investigative body – the TEGA Tribunal to conduct an investigation into possible breaches of the Ownership Restrictions contained within the Teams’ License Agreement.
“The TEGA Tribunal has commenced its investigation into the concerns that TWR Australia may have or have had simultaneous interests in HRT, K Mart Racing and Paul Weel Racing – a total of six (6) cars that compete in the Championship,†said O’Reilly.
“If the investigation reveals a breach of the 4 car provisions of the teams agreement, the racing entitlements of the teams are required to be suspended while the teams licenses are sold†he said.
Following sale of the licences, teams found to be in breach of the ownership restrictions will be prevented from competing in the V8 Supercar racing until such time as the Board enters into a new agreement with the team.
Currently the Board policy of TEGA and AVESCO would see the person/s or entities who are the legal and beneficial owner of a Teams’ License not re-admitted to V8 Supercar racing for a minimum period of two years.
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