The Aditya Birla Group has teamed up with the group led by American sports investor David Blitzer to form a consortium and submit a joint binding bid for the ongoing sale of a majority stake in the Rajasthan Royals, according to people familiar with the matter.
The proposed transaction involves the sale of a majority stake currently held by entrepreneur Manoj Badale. The stake sale process is being run by investment bank The Raine Group, which is advising the sellers on the deal. Moneycontrol first reported about the stake sale on December 8.
People with direct knowledge of the process told Moneycontrol that binding bids from interested suitors are expected to be submitted by March 15, which has been set as the last date for submitting offers in the ongoing process. Currently, four bidders are understood to be in the fray for the asset, with valuations in the process expected to fall in the range of $1 billion to $1.2 billion, according to sources familiar with the discussions.
Also Read: Majority stake sale in IPL team Rajasthan Royals in play; The Raine Group roped in as advisor
Sources told Moneycontrol that Aditya Birla Group director Aryaman Birla, who is also the son of group chairman Kumar Mangalam Birla, has held talks with the Blitzer family this week as part of the discussions around the proposed consortium bid. Aryaman Birla is a former cricketer who had previously been part of the Rajasthan Royals squad and is a keen sports enthusiast.
The development marks the foray of the Aditya Birla Group into the sports league segment.
The development comes at a time when valuations of teams in the Indian Premier League have surged sharply, driven by strong broadcast revenues, sponsorship growth and increasing global investor interest in cricket assets.
Another IPL franchise - Royal Challengers Bengaluru (RCB) - is also up for sale, as its owner Diageo looks to sell the non-core business, Moneycontrol reported on February 25. The sale of RCB has drawn the interest of several bidders including billionaire Adar Poonawala of the Serum group and some private equity funds.
Also Read: Race for Royal Challengers Bengaluru: Diageo sets mid-March deadline for submission of binding bids
The Indian Premier League has emerged as one of the topmost valued sports leagues in the world, behind only the National Football League (NFL) of the US. The 2023-2027 media rights for the IPL were auctioned for $6.2 billion, highlighting the strong financials of the sports league.
Queries sent to the Aditya Birla Group seeking comment on the matter did not elicit a response at the time of publication
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