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UB Group is considering the option of divesting non-core assets including its IPL team Royal Challengers Bangalore (RCB).
“We have not yet taken a decision. We may retain RCB, or we may sell it,” a source from the company who did not want to be named told Business Line .
Asked about the possible RCB sell-off, Mr Ashok Capoor, President and Managing Director of United Spirits Ltd, said, “We have Rs 1,500 crore to Rs 2,000 crore worth of non-core monetisable assets on our balance sheet like treasury stock, investment in United Breweries Ltd, the cricket franchise, which shall be used at an appropriate time to de-leverage and bring the gearing to a comfortable level.
“Meanwhile, we are also taking steps to term out our amortisation pressures through possible bond issuances in due course.”
RCB has never won the IPL championship since it began in 2008 though it made it to the finals twice.
The UB Group comprises United Breweries, United Spirits, Kingfisher Airlines, Mangalore Chemicals & Fertilizers Ltd, UB Global (trading company) and UBICS.
Many divisions have been making losses in the recent past.
For the year ended March 31, 2012, United Spirits saw net profits go down by over 11 per cent to Rs 342.8 crore compared with the previous fiscal. In the same period, United Breweries profits fell 14 per cent to Rs 126.77 crore and Kingfisher Airlines saw profits fall over 98 per cent to Rs 13 crore.
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