Latest News | Torrent Group Gets CCI Nod to Acquire Majority Stake in IPL Team Gujarat Titans
Get latest articles and stories on Latest News at LatestLY. The Competition Commission of India has cleared healthcare and energy conglomerate Torrent Group's proposal to acquire a majority stake in IPL franchisee Gujarat Titans.
New Delhi, Feb 20 (PTI) The Competition Commission of India has cleared healthcare and energy conglomerate Torrent Group's proposal to acquire a majority stake in IPL franchisee Gujarat Titans.
"The proposed combination relates to the purchase of 67 per cent of the shareholding (on a fully diluted basis) of the target (Irelia Sports India Pvt Ltd) and control by the acquirer (Torrent Investments)," a notice submitted to the CCI said on Wednesday.
Torrent Investments is the ultimate holding company of the Torrent Group.
Irelia Sports India operates the Ahmedabad franchisee of the Indian Premier League Gujarat Titans.
"The parties' (Irelia Sports India and Torrent Investments) and activities do not exhibit any horizontal overlap, actual/potential vertical relationship or complementary linkages.
"Accordingly, the proposed combination is being notified under section 6(4) of the competition act," the notice said.
Last week, Torrent Group announced the acquisition of a majority stake in Gujarat Titans for an undisclosed sum, marking the Ahmedabad-based firm's foray into the sports sector.
Torrent Group "through its holding company Torrent Investments Private Limited (TIPL) has entered into a definitive agreement to acquire a majority stake of 67 per cent in the renowned Indian Premier League (IPL) franchise Gujarat Titans", the company said in a statement on February 12.
The conglomerate has bought majority stakes in Gujarat Titans (Irelia Sports India) from Irelia Company Pte Ltd which was currently fully owned by private equity fund CVC.
The transaction is subject to customary closing conditions and approvals (including from BCCI).
As part of the deal, Irelia will retain a substantial minority stake of 33 per cent in the franchise.
CVC Capital Partners acquired Gujarat Titans franchise for a total of Rs 5,600 crore in 2021. It was the second team to win the IPL in their first season.
In recent years Torrent Group has announced its intention to expand into the electrical and diagnostic sectors in addition to the acquisition of Gujarat Titans. The Group's market cap has compounded by 33 per cent per annum over the last five years and grown to about Rs 2 lakh crore.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)