Private equity firm CVC Capital has agreed to sell a 67% stake in the Indian Premier League cricket franchise team Gujarat Titans to Ahmedabad-based Torrent Group, a little more than three years after making its first sports-related investment in India.
The European PE firm will retain a 33% stake in Gujarat Titans, according to a press statement. Incidentally, the ownership lock-in period of the cricket team is ending this month.
“As sports continues to gain prominence in India, Torrent sees great potential in this rapidly growing sector,” said Jinal Mehta, director at Torrent Group, in the statement.
The financial terms of the transaction weren’t disclosed. However, media reports earlier in the day said the deal could be worth Rs 7,500 crore ($866 million at current exchange rates) and that CVC would have an option to sell its remaining stake in the future.
CVC Capital won the Ahmedabad-based IPL franchise for almost Rs 5,625 crore in October 2021. This was the first time a large PE firm acquired a sports team in India. Globally, CVC has made several sports investments including in La Liga, the Spanish football league.
“CVC has a long history of investment in sports since our investments in Moto GP and Formula One, and we are extremely proud of how this investment in Gujarat Titans has developed,” said Nick Clarry, managing partner at CVC.
In India, CVC Capital owns a majority stake in Healthcare Global Enterprises Ltd and technology and legal processing business UnitedLex Corporation. It also invested in speciality chemicals maker Cohizon Life Sciences, earlier known as Sajjan India, in 2022.
The latest transaction will be subject to approvals and conditions by the Board of Control for Cricket in India.
