Bangalore, May 2 (TruthDive): Vijay Mallya’s United Spirits will continue to be the owner of Royal Challengers Bangalore since Diageo was not able to raise its stake to 53.4% in United Spirits.
United Spirits had in a letter signed by Mallya sought BCCI’s approval to transfer the ownership of RCB to Diageo. As per BCCI rules, any change in ownership of IPL team has to be intimated and approved by the governing body. Based on the request, BCCI said it did not have any objection and the formalities will have to be finalized.
United Spirits had put in this request as a move to avoid any delays when Diageo was supposed to pick up a 26% share from the public through the SEBI mandated move to reach 53.4% control of shares. In that case, Diageo would be the owners of RCB. As the stock market trends look , Diageo has not been able to pick the extra shares and Vijay Mallya remains the owner of RCB..
The open offer closed last week with Diageo not getting majority shares and holds no majority. United Breweries Holdings hold 15% in United Spirits, owners of RCB. Diageo had stated that without 26% of the share, it will control United Spirits.
The recent RCB outings did not see Vijay Mallya in his form. RCB in second spot after CSK, cost Vijay Mallya Rs 494.5 crore. Mumbai Indians cost Rs 496 crore for Mukesh Ambani.
Virat Kohli led RCB has so far figured in two IPL finals but able to get the trophy. This time too the the team is second to CSK. According to those in the know, it is the Rajasthan Royals who has Rahul Dravid, which is making money.
The buying of lesser known and upcoming Indian players and using the money cleverly without spending on foreign players with big tags is the USP. The Indian players it bought gave the money its worth.