DIAGEO has begun the process of selling its stake in Indian Premier League franchise Royal Challengers Bangalore (RCB), CNBC-TV18 reports, citing sources. The brewer is reportedly seeking a valuation of around $2 billion for the franchise.
CitiBank has reportedly been appointed as transaction advisor to manage the sale process.
RCB is currently owned by United Spirits Limited, a Diageo Group company. It was in early June that reports first surfaced that the British distiller was exploring options for the potential sale of the IPL 2025 title holders.
Coming to the present, among those said to be exploring a bid is Serum Institute of India’s Adar Poonawalla, who is seen as among the leading contenders. Pertinently, prospective buyers are reported to be keen on acquiring full ownership rather than a partial stake.
Both Diageo and Poonawalla declined to comment to the business news channel on the matter.
The development comes soon after another high-profile IPL transaction. Torrent Group, via its holding arm Torrent Investments Pvt Ltd, recently signed a definitive agreement to acquire a 67% majority share in Gujarat Titans (GT) from Irelia Company Pte Ltd, an entity fully owned by CVC Capital–advised funds.
That deal, which reportedly valued GT at about Rs 7,500 crore ($845 million), will see Irelia retain a 33% minority holding, subject to regulatory approvals, including from the BCCI. In contrast, Diageo is seeking more than twice that valuation for RCB.
Commenting on the matter via X, Lalit Modi said, “There have been a lot of rumours about the sale of an IPL franchise. 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. I am sure having won the IPL last season and with its strong base of fans and great management, it could be the only team available as a whole. One of the big global funds or sovereign funds would desperately like to have them as part of their India strategy. This will definitely set a new record valuation and become the floor price for all IPL teams. I am sure Citi will do a great job auctioning the team.”
