Diageo drops bomb, issues official statement on RCB's sale after Bengaluru stampede

Diageo India, an Indian branch of UK-based Diageo Plc and the owner of the Royal Challengers Bengaluru (RCB), has responded to recent reports suggesting it is exploring the sale of its entire stake in the IPL team.

Earlier this week, a report from Bloomberg stated the Bengaluru-based franchise could be valued at up to $2 billion and Diageo is exploring the sale of the franchise in order to free up funds and focus on its main operation of premium liquor sales.

RCB up for sale?

The report stated that the move from the company came amid increasing pressure from the Health Ministry to curb indirect alcohol advertising during popular events like the IPL.

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Diageo has been using non-alcoholic and soda brand extensions for visibility but the stricter ad norms proposed by the ministry is likely to stop the surrogate advertisement.

Media Reports Are Speculative: Diageo To BSE On 'RCB For Sale' Reports

Responding to the recent reports, Diageo has now categorically denied them. In a letter to the Bombay Stock Exchange (BSE) and BSE Surveillance Department on Tuesday (June 10), a Diageo India official has said that the media reports about the sale of RCB are speculative in nature.

"The company would like to clarify that the aforesaid media reports are speculative in nature and it is not pursuing any such discussion. This is for your information and records," Mital Sanghvi, the company secretary, told BSE as quoted by Cricbuzz.

The company's response was a reply to an email from the BSE. Diageo is registered with the BSE, and the shares of the Diageo-owned United Sports saw an uplift after the reports emerged.

RCB win their maiden IPL title

The reports surfaced just days after RCB won their maiden IPL title. After 17 years of disappointment and heartbreak that saw them lose three finals as well, RCB finally laid their hands on the IPL trophy. The Rajat Patidar-led side beat Punjab Kings by 6 runs in the final on June 3.

The historic moment, however, turned into a nightmare just hours later after a stampede during the victory celebration in Bengaluru left 11 dead and more than 30 injured. The horrific incident happened just outside the M. Chinnaswamy Stadium while the team was busy celebrating inside the stadium.

Also Read: RCB Up For Sale After Bengaluru Stampede As Diageo Set To Part Ways With IPL Franchise