Media365
NEW DELHI: Ahmedabad-based Torrent Group is all set to acquire around two-third stake of Indian Premier League franchise Gujarat Titans from CVC Capital Partners, an Economic Times report said on Tuesday.
The transaction is expected to value around Rs 7,500 crore ($856 million) with both parties currently in the process of seeking approval from the Board of Control for Cricket in India (BCCI) for the transaction.
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When the deal finally gets a nod from the BCCI, it will mark the first majority stake sale of an IPL team since the tournament’s inception in 2008.
CVC has also agreed to put an option for the remaining one-third stake.
The BCCI is expected to receive around 5 percent of the deal value, as per original terms, the report said.
The final agreement between Torrent Group and CVC is expected to be signed later this week after the ownership lock-in period for CVC expired on February 10.
Both parties are looking to complete the deal before the IPL season starts in March.
Torrent promoters will make the investment through Torrent Investments Private Limited, their holding company. The company has sufficient cash reserves and has been expanding beyond its core sectors of pharmaceuticals and power.
Torrent Investments established Torrent Sports Ventures in 2021 to enter the sports sector.
CVC, which holds investments in various sports properties, acquired the franchise for Rs 5,625 crore ($745 million) in 2021, outbidding both Adani Group and Torrent Group.
The investment was planned over a 10-year period, with CVC investing approximately Rs 1,800 crore to date.
The franchise is currently owned by CVC’s Irelia Sports India.
Torrent had previously bid Rs 4,653 crore for the franchise, while the Adani Group offered Rs 5,100 crore.
