United Spirits Reacts to Royal Challengers Bangalore Sale Speculations
There have been multiple news reports on the stake sale of Indian Premier League (IPL) team Royal Challengers Bangalore (RCB). However, United Spirits Ltd., the current owner of the franchise, has refused to comment on the “market speculation”.
“The company would not like to comment as it does not respond to market speculation,” the company said in an exchange filing on Tuesday.
Former IPL Chairman Lalit Modi Fuels Speculations
Former IPL Chairman Lalit Modi on Monday had fueled the speculations after he posted the news on Instagram saying that the owners have finally decided to sell it. Modi wrote, “There have been a lot of rumour about the sale of an IPLT 20 franchise, specifically Royal Challengers Bengaluru – well in the past they have been denied. But it seems the owners have finally decided to take it off their balance sheet and sell it.”
He wished good luck to the bidders and emphasised that there “can be no better investment opportunity than this one.” Modi added, “Good luck to whoever can get their hands on it. It definitely will set a new record valuation which will just go to show that IPL is not only the fastest-growing global sporting league but also the most valuable.”
Adar Poonawalla in Talks to Buy RCB Franchise
NDTV Profit on Tuesday reported that Billionaire Adar Poonawalla, the chief executive officer of Serum Institute of India, is in talks to buy the RCB franchise, along with other bidders. People in the know told NDTV Profit that the negotiations are still ongoing. The Bengaluru-based IPL team seeks a one-time payment for the franchise, they added.
It should be noted that Poonawalla’s interest in RCB aligns with his diversification plans.
United Spirits and Diageo Group
RCB is currently owned by United Spirits, a Diageo Group company. In June, Diageo Plc. was considering options for the ownership for RCB. The British distiller had reportedly held discussions with potential advisers and was seeking a valuation of as much as $2 billion, as reported by Bloomberg.
United Spirits said in an exchange filing in June that reports related to potential stake sale are “speculative in nature” and “it is not pursuing any such discussions.”
Impact on Indian Stock Market
The potential sale of RCB could have a significant impact on the Indian stock market, particularly on the stocks of companies related to the IPL and sports industry. Investors should keep a close eye on the developments and be prepared for any potential fluctuations in the market.
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Conclusion
In conclusion, the Royal Challengers Bangalore sale speculations have been making headlines in recent days, with former IPL Chairman Lalit Modi and potential buyer Adar Poonawalla adding fuel to the fire. While United Spirits has refused to comment on the matter, the potential sale of RCB could have a significant impact on the Indian stock market. Investors should stay tuned for further updates and be prepared for any potential developments.
