The Rajasthan Royals sale: Why sellers are watching RCB closely
The RCB and RR sales are now entangled, with overlapping bidders, shifting timelines, and each side watching to see what price the other commands. Meanwhile, the shortlists narrow and complications mount.
The Rajasthan Royals’ (RR) billion-dollar sale has slowed. The sellers would rather watch what happens with the Royal Challengers Bengaluru (RCB) first.
Multiple sources have told The State of Play that the RR’s Round 2 bidding process, originally scheduled for around March 10, may be pushed back slightly as Manoj Badale’s Emerging Media weighs whether to wait until the RCB transaction concludes.
“They want to make it as close to RCB as possible, so that people can’t think they have a backup option, and give maximum offers to RR, which in turn reduces elasticity,” said a person aware of the process.
The RR process has another complication: Azim Premji, prominently listed as a key India-based investor in Kal Somani’s $1.3 billion bid consortium, never formally committed to the deal, according to two sources familiar with the matter. Premji Invest declined to comment.
What was supposed to mark a clean generational handoff for two of the Indian Premier League’s (IPL) founding franchises has turned into a slow-motion negotiation where the same bidders circle both deals, timelines shift, and each side watches to see who blinks first.
The RCB process has moved to the next phase. The initial list of eight or nine parties two weeks ago has narrowed considerably, with due diligence underway. “Essentially, the list will come down to a handful of 4-6 bidders,” said a person aware of the RCB sale process, with several still in conversation with potential backers as they mull a binding bid.
At least three people familiar with the process say the shortlist now includes Lancer Capital (Avram Glazer), Adar Poonawalla (backed by TPG), Ranjan Pai (backed by KKR and Temasek), EQT Private Capital, the Times of India Group, and Capri Global, with the latter two still in the mix.
At least one bidder for both RCB and RR, believed to be Washington Freedom owner Sanjay Govil, has dropped out, according to two sources. He was unhappy with how both processes were run and the asking price. Govil did not respond to The State of Play’s query at the time of publication.
The question now is which sale closes first, and whether the second will simply wait to see what price the first commands. Diageo is bound by a ticking clock, with a strategic review deadline on March 31; the Rajasthan Royals has no such deadline, since it is privately held.
