Vijay Mallya is closing in on the Spyker Ferrari deal and an announcement can soon be expected reports CNBC-TV18. The Spyker Ferrari Board has approved the bid and Mallya will invest in Spyker Ferrari in his personal capacity.

The branding option for Spyker Ferarri is open to the Kingfisher or UB Group.

Kingfisher will continue to sponsor the Toyota Panasonic F1 team. Spyker had acquired the Midland F1 team for $106.6 million.

Vijay Mallya''s bid for Spyker Ferrari is at a reasonable premium, stated sources. CNBC-TV18 had reported on this deal on 28 August.

The king of acquisitions has picked up a Formula One team, making him the first Indian to ever do so. F1 history has been created from an Indian point of view, said analysts.

Spykar Ferrari is a Dutch carmaker and is listed on the Dutch Stock Exchange. Spykar Ferrari is a team that has seen a spate of buyouts. In fact, Spykar had bought out the F1 team from Midlands in 2006 and now Vijay Mallya has come in and picked up a controlling stake in the company.

The Spykar Ferrari board has backed Mallya''s bid. Spykar had paid $106.6 million to pick up the team from Midlands, which was earlier owned by Jordan.

It is understood that Vijay Mallya'' bid is at a reasonable premium to $106.6 million. He is investing in his personal capacity, so it is not UB Group company or Kingfisher Airlines that is picking up the F1 team. It is Mallya investing in his personal capacity.

Kingfisher will continue to sponsor the Toyota Panasonic F1 team and that association is expected to continue.

Spykar Ferrari is a low-ranked team and it is called a ''backmarker'' on the F1 circuit because of its underperformance. But in F1, it is not just about your racing skills and abilities, but also about the money.

Spykar Ferrari has been financially strapped, but with Mallya coming in it''s fortunes could change.

Earlier, in Istanbul, Mallya had said about the likelihood of the deal, "As far as I am concerned, nothing is impossible. Part and parcel of bringing F1 to India is to also have an Indian company involved in F1. In what form or shape, I am not going to disclose as yet," said Vijay Mallya, Chairman, UB Group.