Deccan Chronicle Holdings Limited (DCHL), having a debt weight
of Rs 32 billion, can heave a sigh of relief as it found an
interested party in Videocon Industries soon after it issued
a tender notice inviting prospective buyers to bid for its
sale of the team at the right price holds the key to DCHL's
rescue plan as it desperately seeks investors to protect its
core media business from sinking. The company is believed
to have borrowed from 28 lenders including Yes Bank, and has
mortgaged its other assets including its printing presses.
it's amptly clear by now that DCHL will not get the kind of
valuation that it was earlier looking for. The company, which
publishes a clutch of newspapers including Deccan Chronicle
and Financial Chronicle, was seeking Rs 15 billion from the
sale of Deccan Chargers, the Hyderabad IPL team.
gauging market sentiment, the company has climbed down from
its demand and would be able to find a buyer willing to pay
in the range of Rs 6.5-8 billion. Many believe Rs 6.5-7 billion would be an attractive valuation for the Hyderabad
Dhoot, the CMD of conglomerate Videocon Industries, told Indiantelevision.com
that a price tag in that range was "reasonable".
are interested in buying the franchise. Our bid could be in
the range of Rs 7 billion," he added.
Videocon is not the only interested party. Some of the names
doing the rounds include that of Ahmedabad-based Adani Group,
Anil Ambani-promoted ADA Group and Chennai-based media house
Sun Group(not listed entity).
could not independently confirm whether Adani, Reliance ADAG
and Sun are actually interested in Deccan Chargers. Gautam
Adani, chairman of Adani Group, and Sun Group promoter Kalanithi
Maran, could not be reached. Earlier, DCHL had denied a media
report which had stated that the company was close to striking
a deal with Sun Group.
Videocon, Adani and Reliance had at some point expressed interest
in owning an IPL team.
had early Thursday issued a tender inviting bids to purchase
the Hyderbad IPL team under the aegis of BCCI.
per the tender notice, bidders would be required to enter
into a new franchise agreement with BCCI. The purchase consideration
would be paid into a bank account as decided by the lending
banks, with 5 per cent payable directly to the BCCI.
The winning bidder will acquire from Deccan Chronicle Holdings
on an "as is where is" basis which means that the
new buyer will have to use the name Deccan Chargers and will
have to clear the liabilities of the current owner.