BENGALURU: A consortium led by the Aditya Birla Group (ABG) on Tuesday acquired 100 percent equity stake in IPL franchise Royal Challengers Bengaluru for a whopping USD 1.78 billion (approximately Rs 16,706 crore) from its current owner the United Spirits Limited.
Other parties involved in the group are — Blackstone’s perpetual private equity strategy, BXPE, a firm of which Viral Patel is the CEO, Bolt Ventures, owned by American investor David Blitzer, and media conglomerate Times of India.
“United Spirits Limited, pursuant to the meeting of its Board of Directors, today announced that it has entered into definitive agreements for the sale of the 100 percent equity stake held in its wholly owned subsidiary Royal Challengers Sports Private Limited (RCSPL) to a consortium,” the USL said in a statement.
As per the sale agreement, Aryaman Vikram Birla, ABG’s director, will be the chairman of RCB, while Satyan Gajwani of Times of India will be his deputy.
“It is a privilege to come together in this partnership to shape the next phase of growth for RCB. This partnership brings together a deep understanding of sports, media and consumer businesses,” said Aryaman Birla.
“Together, we will continue to Play Bold — on the pitch, in the community, and for the fans who make RCB what it is.”
However, formalities such as ratification from the BCCI, IPL Governing Council, its WPL counterpart and the Competition Commission of India are still pending.
The effort to find a new owner for RCB, currently valued at around $105 million as per Forbes India, began in November last year by current owners United Spirits Ltd, the Indian arm of global beverage major Diageo.
United Spirits acquired RCB from original owner Vijay Mallya after his business ventures collapsed in 2016.
