Diageo denies reports of RCB stake sale, calls them speculative
United Spirits, owned by Diageo, has clarified that it is not in talks to divest stake in IPL franchise Royal Challengers Bengaluru (RCB).
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United Spirits Limited (USL), the Indian arm of global liquor giant Diageo, has denied recent media reports suggesting it is considering a stake sale in the Indian Premier League (IPL) team Royal Challengers Bengaluru (RCB). In a filing with the Bombay Stock Exchange (BSE) on June 10, the company termed such reports as “speculative” and confirmed that no such discussions are currently underway.
“This has reference to your email seeking clarification from the Company on media reports in relation to potential stake sale of RCB. The Company would like to clarify that aforesaid media reports are speculative in nature and it is not pursuing any such discussions,” said Mital Sanghvi, Company Secretary at United Spirits.
The clarification comes amid rumours that Diageo is in early discussions with potential advisers about the possibilities to sell a part or all of the franchise.
A Bloomberg report earlier quoted that the alcobev major is looking to seek a valuation of as much as $2 billion for RCB.
The news of the potential stake sell comes a week after RCB lifted the IPL trophy for the first time in 18 years and the franchise's value continues to soar. The move also comes at a time when Diageo is facing mounting regulatory pressure from the Union Health Ministry to curb indirect advertising of alcohol during major sporting events like the IPL.
