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Corporate Sep 13, 2012

Deccan Chargers on block today, Videocon rules itself out

By Firstbiz Staff

IPL team Deccan Chargers is up for sale today after being unable to pay players salaries due to the financial troubles of their present owners, and has potential buyers ranging from industrial houses to a filmmaker.

The ownership of the team, presently owned by Deccan Chronicle Holdings, will change with the Board of Control for Cricket in India (BCCI) opening the bids made by potential buyers and also announcing the buyer today if all the criteria set are met.

Up for sale. AFP

According to a Bloomberg UTV report, among the corporate houses in the fray to buy the team include the RPG Group, infrastructure firm Jaypee Group and Hyderabad-based private equity fund Peepul Capital.

Gujarat-based Adani Group is also reportedly interested in the team, but may not bid presently and is seeking financial partners to share ownership of the team with.

Private equity fund Peepul Capital, which had earlier shown interest in acquiring the media assets of Deccan Chronicle, is reportedly not to keen on funding the team, according to an Economic Times report.

While RPG Group is perhaps the only group to have openly shown interest in owning the team, Videocon group which had initially said it was interested was quoted in a report saying that there had no interest in buying the team anymore.

"We have not picked up the tender (document)," Venugopal Dhoot, CMD of Videocon, was quoted as saying in a report in the Mint.

The group had earlier bid for the Pune team in 2010 but had subsequently lost out to the Sahara group.

Among the other buyers in the fray reportedly include Potluri Vara Prasad of PVP Ventures, that recently made a bilingual hit film Naan Ee. With financial interests in real estate, finance and entertainment the company is reportedly interested in acquiring the team, a report in the Economic Times said.

As Firstpost reported earlier, thefact that the new buyer will be responsible for clearing the liabilities of the current owner has held many back from bidding for Deccan Chargers, and has resulted in a lower valuation than expected for the team.

But for Deccan Chronicle Holdings, which is under scrutiny from its lenders across the country, the sale of the team may come as a lifeline to do away with some part of its debt, estimated by some to be over Rs 4,000 crore.

by Firstbiz Staff

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