The US-based Kal Somani-led consortium, “deeply disappointed” after losing the Rajasthan Royals’ ownership bid to the group led by entrepreneur Lakshmi N. Mittal, denied withdrawing from the bidding process on Tuesday, claiming that the result does not represent a “level playing field.”
According to the franchise, Lakshmi Mittal and his son Aditya Mittal, along with vaccine manufacturer Adar Poonawalla, purchased a majority stake in Rajasthan Royals for USD 1.65 billion (roughly Rs 15,600 crore) following the withdrawal of the consortium that included tech entrepreneur Somani, Rob Walton (Walmart Group), and Sheila Ford Hamp (Ford group).
“We are deeply disappointed not to be part of the Rajasthan Royals ownership group, following a long six-month process in which we were the lead bid from start to finish,” the consortium stated in a press release.
“Contrary to stories that have been planted in the press, our group was and has always been fully funded, prepared to close with certainty, and never withdrew our bid,” it added.
The organization claimed to have the necessary paperwork and was informed that the franchise’s board meeting was scheduled for Saturday in order to approve their proposal.
“In the end this was never the case. We approached this process with the highest standards of honesty, integrity, professionalism and in good faith, but unfortunately that wasn’t enough. We do not believe the outcome ultimately reflected a level playing field, and it is difficult to reconcile the strength of our bid and preparedness to close with the final decision,” it said.
The US-based consortium headed by Somani had made an offer of USD 1.63 billion, but the current owners, Manoj Badale and the consortium, were unable to approve it due to several problems with its documentation, according to sources.
However, the statement announcing Mittals and Poonawalla as the new owners did not reveal the specific issues with the proposal.
“While we respect competitive outcomes, we also believe that processes of this significance should be conducted with transparency, consistency, integrity and in good faith,” the group said.
Poonawalla will control about 18% of Rajasthan Royals, with the Mittal family owning about 75%. Approved current investors, including Badale, will hold the remaining roughly 7%.
Lakshmi N. Mittal, Aditya Mittal, Vanisha Mittal-Bhatia, Adar Poonawalla, and Badale will make up the reorganized Rajasthan Royals board.
Throughout the process, the consortium led by Somani claimed to be the strongest bidder.
“…we were the strongest group at every stage, competing against some of the most prominent investors across the sports investing landscape.
“While this outcome is both surprising and disappointing, we view this experience as part of a broader journey.”
