AirAsia’s Fernandes Trying to Sell Caterham Group, Edge Reports

May 25, 2014 12:56 am ET

May 25 (Bloomberg) -- Tony Fernandes, chief executive officer of low-cost carrier AirAsia Bhd., plans to sell the Caterham group of automotive and engineering companies, The Edge Malaysia reported.

The 50-year-old Malaysian businessman is seeking about 350 million pounds ($589 million) for the assets that include U.K. sports car manufacturer Caterham Cars Ltd. and the Caterham Formula One Team, the newspaper said, citing a person it didn’t identify.

An information memorandum on the sale is being circulated in the Middle East, Edge reported. Fernandes didn’t respond to a call and a text message to his mobile phone, as well as an e- mail, seeking comment.

The reported sale follows Fernandes’s warning in January to stop funding the F1 Team if performance didn’t improve, the Edge reported. The Caterham-Renault racing team failed to win a single point in the 2012 and 2013 seasons, as well as in the first five races this year, official FIA results showed.

Fernandes also scrapped a plan to introduce a premium private-jet operation known as Caterham Jet after several failed attempts, the Malaysian Reserve newspaper reported on May 23.

Fernandes, ranked 28th richest person in Malaysia by Forbes magazine with a net worth of $650 million, also owns British football club Queens Park Rangers that has won promotion to the Premier League next season.