Home » Sports News » 2012 » September » September 6, 2012

DCHL issues tender notice to sell Deccan Chargers

September 6, 2012 - Hyderabad

The Deccan Chronicle Holdings Limited (DCHL) which owns the cricket franchise Deccan Chargers has issued a tender notice on Thursday inviting bids from prospective buyers for its IPL franchisee. The company is currently in the middle of a deep financial crisis.

The BCCI working committee which met Monday has decided to allow DCHL to issue the tender notice. According to the tender notice that will be issued, the winning bidder will acquire the right to own and operate the Deccan Chargers team which is based in Hyderabad and competes in the Indian Premier League and any CLT20 staged from 2013 onwards. The tender notice includes the term "as is where is", which means that the new buyer will have to use the name Deccan Chargers and will have all the liabilities of the current owner.

The Deccan Chronicle Holdings is in the middle of a deep financial crisis. Aside from the Deccan Chargers team, the company is in newspapers business and holds Deccan Chronicle, Financial Chronicle and Andhra Bhoomi. According to the chairman of DCHL, Tikkavarapu Venkattram Reddy, the financial trouble they are facing currently is due to short-term borrowings the company made instead of long-term borrowings. They are selling the Deccan Charger steam which would sort out most of the immediate cash crunch issues, but have no plans to sell their newspaper business.

The invitation to tender and the bid document can be acquired from the BCCI office in Mumbai upon a payment of Rs. 5 lakh by demand draft or pay order favouring DCHL from September 7. BCCI will have the right to own 5 percent of the bidding amount as per the IPL constitution. The last day for submitting the bid is September 13. The winner will also be announced on the same day.

DCHL earlier appointed investment banking institution Religare to find a potential buyer in June, which they failed to find one.

Andhra News

Comment on this story