Doesn’t reflect level-playing field: US Group on losing RR bid

“Deeply disappointed” after losing the Rajasthan Royals’ ownership bid to the group led by industrialist Lakshmi N Mittal, the US-based Kal Somani-led consortium on Tuesday denied that it pulled out of the bidding process, asserting that the final outcome does not reflect a “level playing field”.

Lakshmi Mittal and his son Aditya Mittal, along with vaccine manufacturer Adar Poonawalla, acquired a majority stake in Rajasthan Royals for USD 1.65 billion (Rs 15,600 crore approx) after the consortium comprising Somani (Tech Entrepreneur), Rob Walton (Walmart Group) and Sheila Ford Hamp (Ford group) pulled out of the race, according to the franchise.

“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 group said it had documentation in place and was told that the franchise’s board meeting on Saturday was held to approve its bid.

“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 led by Somani had offered USD 1.63 billion but as per sources there were multiple issues with its documentation, which could not pass the scrutiny of the existing owners — Manoj Badale and consortium.

However, the specific issues with the bid were not disclosed in the statement that was issued to announce Mittal and Poonawalla as the new owners.

“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.

The Mittal family will own approximately 75 per cent of Rajasthan Royals, with Poonawalla holding around 18 per cent.

The remaining approximately 7 per cent will be held by approved existing investors, including Badale.

The restructured Rajasthan Royals board will comprise Lakshmi N. Mittal, Aditya Mittal, Vanisha Mittal-Bhatia, Adar Poonawalla and Badale.

The Somani-led consortium asserted that it was the strongest bidder throughout the process.

“...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.”