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indiantelevision.com Team
MUMBAI: Deccan Chronicle Holdings (DHL), the parent company of IPL franchise Deccan Chargers, is exploring possibilities of selling the franchise.
The media company, which runs popular English daily Deccan Chronicle, has mandated Religare Capital Markets to advise it on offers that have come for the Hyderabad based IPL team.
However, it could not be ascertained whether Deccan is looking at a minority, majority or an outright sale. The prospect of a complete exit cannot be ruled out since a Deccan Chargers official had earlier told Indiantelevision.com that the parent company was game for it provided the value is right.
?Deccan Chronicle Holdings has been approached by multiple parties evincing interest in acquiring stake in Deccan Chargers and the company has appointed Religare Capital Markets to run a process and advise us of suitability of the offers,? DCH said.
The company, however, clarified that the ?the above step is only exploratory and no conclusive or firm decision has been taken on the issue.?
When contacted, Deccan Chronicle Holdings vice chairman PK Iyer refused to get into the details. ?I don?t have any comments to make on the matter," he said.
This is not the first time that DCH has mandated an investment bank to find suitors. In 2008, DCH had appointed KPMG Corporate Finance and was looking at a valuation of $250 million including the option to exit at the right price.
However, the company had to put the franchise sale on slow burner since it did not find many takers at that price which only accentuated with the economic slowdown of 2009.
Deccan Chargers Sporting Ventures, a wholly owned subsidiary of DHL, had bought the franchise rights of Hyderabad IPL franchise for $107.01 million which was payable over a 10-year period.
IPL teams have often been in the news for being approached by investors who see business opportunity in the cash rich league despite the fall of its brand value due to controversies surrounding it.
Rajasthan Royals and Kings XI Punjab have also reportedly been on the lookout for buyers, though the teams have refused to talk about it publicly.
Recently, Kolkata-based Jain Group was said to be in talks with Royals to acquire the franchise at a valuation of $200 million. However, things did not materialise and the deal fell through.
Similarly, Punjab team was in 2010 approached by Videocon Group to buy the franchise whose investors include Dabur?s Mohit Burman, Wadia Group?s Ness Wadia, actress Priety Zinta, and Karan Paul of Apeejay Surendra Group.
It is believed that the two franchises have to get BCCI?s permission to sell stake since the both are currently in arbitration with the cricket board.
The BCCI had in 2010 terminated franchise agreements of the two teams. However, both were successfully reinstated after legal battle.
Incidentally, Videocon Group couldn?t manage to get an IPL franchise as the bidding process to identify the two new teams was cancelled. The company was keen on Pune franchise which is currently owned by Sahara Group.
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Deccan Chargers mandates KPMG to find suitor, eyes $250 million valuation
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