Videocon Industries is one of the front runners to buy out Deccan Chargers, the Deccan Chronicle Holdings Ltd (DCHL)-owned Indian Premier League's Hyderabad franchisee.
DCHL, which is under severe financial crisis, issued a tender notice today inviting bids to sell the Deccan Chargers team, and Videocon, which was earlier also looking to own a team, is gearing up to bid.
“We are definitely interested in buying the team from DCHL. If we manage to, we would like to shift it to Ahemdabad,” Videocon Industries Chairman and Managing Director Venugopal Dhoot told Business Standard. When asked about a realistic value, Dhoot said Rs 700 crore seems “reasonable” to him.
However, according to the tender notice, the new owner will have to use the name Deccan Chargers and will also have to clear the dues that includes pending salaries of the players for the fifth edition of the IPL.
Following the meeting of the Board of Control for Cricket in India's (BCCI’s) working committee held on Monday, DCHL was allowed to issue tender notice. The notice states that the winning bidder will acquire from the DCHL on an “as is where is” basis the right to own and operate the IPL team currently known as Deccan Chargers, which is and will continue to be based in Hyderabad and which competes in the Indian Premier League and has the opportunity (if applicable and subject to qualification) to compete in each and any CLT20 which is staged from 2013 onwards.
When asked, Dhoot said that BCCI may agree to let them shift the team, but that will come later.
According to the notice, the invitation to tender and the bid document can be acquired from the BCCI office in Mumbai from 7 September on a payment of Rs 5 lakh. BCCI will acquire five per cent of the bidding amount in accordance with the IPL constitution. The winning bid will be announced on September 13.
The market is abuzz with talk that the Reliance ADA Group and Adani Group are also interested. However, this could not be confirmed independently.
BCCI has already made it clear that promoters cannot mortgage their IPL team for borrowing money from banks for their other businesses.
Deccan Chargers’ owners had appointed Religare Capital to structure a deal to sell sake. Deccan Chronicle has borrowed Rs 3,200 crore from 28 lenders. Only two private sector banks and one financial services firm had the right on Deccan Chargers’ revenue as collateral against their loans.