United Spirits Reacts After Reports Fuel RCB 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 on Tuesday 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 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."

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.

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."