IPL 2020 | Emerging Media (IPL) Ltd proposes BCCI a 190+ crore internal share transfer
Stokes alongside Rahane
|IPL
One of the three stakeholders that own RR, Emerging Media (IPL) Ltd - the second-highest stakeholder in all likelihoods will increase their stake with a deal worth (Rs 190+ crore) if BCCI approves it. It is a proposal to facilitate an internal sale of shares between existing stakeholders.
The parent company that owns Rajasthan Royals - Emerging Media Sporting Holding has proposed BCCI to facilitate an internal sale of shares between the already existing stakeholders, a move that will take the Royals overall valuation at Rs 1,418 crore (US$350m+), which is a humongous jump from Rs 268 cr (US$67m), which was RR's valuation at the onset of the IPL, which kick-started in 2008, where the Rajasthan-based franchise had tasted title triumph under the leadership of Shane Warne.Ā
As per TOI, Emerging Media wants to buy the 13.4% stake from Kelowna Investment Ltd amounting in excess of 190 crores (US$26m) in what will be an all-cash deal if BCCI approves it, who have already been sent the proposal and stand to make approximately Rs 10 crore as per the "Clause 10.4 of the franchise agreement that calls for a franchise to pay BCCI 5% transaction value of the sales upon consummation".
Emerging Media, which already has a 36.7% stake in the team will have a big jump to 50.1% stakes in the franchise if the deal goes on successfully.Ā
IPL has been a huge hit in India and the 13th edition of the cash-rich league will commence from September 19 with the clash of defending champions Mumbai Indians and last year finalists, Chennai Super Kings. Steve Smith-led RR will take on MS Dhoni-led CSK in their opening game of the season on September 22 at Sharjah.
