Vijay Mallya may sell RCB stake to escape debt trap

July 10, 2012

vijay-mallya

Bangalore, July 10: After the financial turbulence at Kingfisher Airlines, Chairman Vijay Mallya's United Spirits is looking at reducing its debt and bringing back the good times. It may even sell its stake in its Indian Premier League (IPL) team Royal Challenges Bangalore (RCB).


Vijay Mallya's acquisition of the brand White & Mackay helped United Spirits reach the top of the global pyramid, but it came at a cost. Its debt has surpassed Rs 7,000 crore and the company is looking at monetising its non core assets to bring this down to manageable levels.


When the price is right, these assets could well include treasury stocks, a stake in United Breweries, and even a stake in its cricket franchise Royal Challengers Bangalore - all worth between Rs 1,500 and Rs 2,000 crore.


Ashok Capoor, President & MD, USL, said, "We have non core assets we can monetise anytime - treasury stocks, UBL stocks, Royal Challengers. But we will not do any selling at this stage. We will only sell when the price and timing are right to bring our debt down in the future.


That's not all. After touching 120 million cases in volume sales last fiscal, USL is now shifting focus to margins. So the sales target 200 million cases by FY 16 is taking a back seat. USL will drive brands that will contribute to revenues, even if they don't add to the volumes initially.


Ashok Capoor said, "We are chasing value, brands that are more premium and the trend is also towards premiumisation, so with that agenda I don't think we will do 200 million cases by FY 16. It will be less than that."


The company is also hoping that input costs will stabilise this year, making its job much easier.


In 2011, the prices of key input elements, extra neutral alcohol or ena and glass, rose significantly, forcing USL to opt for an aggressive, higher-than-usual, 3.5 per cent price hike. But USL says both ena prices and glass availability are improving this year and as they say - every drop counts.



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Agencies
July 7,2020

Mumbai, Jul 7: Australias second largest city Melbourne is set to go for another round of lockdown — for six weeks — from midnight Wednesday as the coronavirus has reared its ugly head in Victoria. And this has further confirmed that this years T20 World Cup in Australia is practically not possible. Even as the ICC keeps delaying the announcement, BCCI hopes that the official call will now be taken with this latest development.

Despite ICC's Financial and Commercial Affairs Committee (F&CA) chief Ehsan Mani as well as Cricket Australia making it clear time and again that hosting a T20 World Cup in the October-November window is practically impossible, the ICC hasn't made an official announcement and that hasn't impressed the Board of Control for Cricket in India (BCCI).

Speaking to media persons, a BCCI official said that it is only the ICC which has kept speaking about delaying the inevitable — announcing a postponement — even as Cricket Australia chairman Earl Eddings wrote to the international body that it looks highly unlikely that a T20 World Cup can be hosted in these trying times.

"As it is there were so many logistical difficulties and that is perfectly understandable. The Australian government has been addressing the public health issue efficiently and there are regulations in place which are crucial to address the challenges. In that background even Cricket Australia has been practical in their assessment of the situation.

"With this present situation where Melbourne is in lockdown, the ICC really must take the final call of closure on the issue if they have any concept of responsible decision making," the official said.

Not just CA chairman Eddings, but also Mani — who is also the PCB chief — recently told the media that the T20 World Cup cannot be held in a bio-secure environment.

"We have had a lot of discussions and the feeling is it (T20 World Cup) would not be possible this year. ICC has World Cups lined up in 2021 and 2023, so we have a gap year where we can adjust this event. God forbid if some player(s) falls ill or mishap occurs during the tournament, it will have a big impact and create panic in the cricket world and we can't take that risk. Having a bio-bubble environment is feasible for say a bilateral series like Pakistan in England, but it is very difficult when 16 teams are involved," he had said.

Cricket Australia's interim CEO Nick Hockley echoed the sentiments when he said the biggest challenge was to get the players from so many teams into the country.

"Our biggest challenge is getting 15 teams into the country. If I compare it with the prospect of a bilateral tour, you're talking about bringing one team in and then playing individual matches. But the prospect of bringing 15 teams in and having six or seven teams in one city at the same time, it's a much more complex exercise," he had said.

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Agencies
June 23,2020

Belgrade, June 23: Novak Djokovic tested positive for the coronavirus on Tuesday after taking part in a tennis exhibition series he organized in Serbia and Croatia.

The top-ranked Serb is the fourth player to test positive for the virus after first playing in Belgrade and then again last weekend in Zadar, Croatia.

His wife also tested positive. “The moment we arrived in Belgrade we went to be tested. My result is positive, just as Jelena's, while the results of our children are negative," Djokovic said in a statement.

Djokovic has been criticized for organizing the tournament and bringing in players from other countries amid the coronavirus pandemic.

Viktor Troicki said Tuesday that he and his pregnant wife have both been diagnosed with the virus, while Grigor Dimitrov, a three-time Grand Slam semifinalist from Bulgaria, said Sunday he tested positive.

Borna Coric played Dimitrov on Saturday in Zadar and said Monday he has also tested positive. There were no social distancing measures observed at the matches in either country and Djokovic and other players were seen hugging each other and partying in night clubs and restaurants after the matches.

 “Everything we did in the past month, we did with a pure heart and sincere intentions,” Djokovic said.

“Our tournament meant to unite and share a message of solidarity and compassion throughout the region.” Djokovic, who has previously said he was against taking a vaccine for the virus even if it became mandatory to travel, was the face behind the Adria Tour, a series of exhibition events that started in the Serbian capital and then moved to Zadar.

He left Croatia after the final was canceled and was tested in Belgrade. The statement said Djokovic was showing no symptoms.

Despite the positive test, Djokovic defended the exhibition series. “It was all born with a philanthropic idea, to direct all raised funds towards people in need and it warmed my heart to see how everybody strongly responded to this,” Djokovic said.

"We organized the tournament at the moment when the virus has weakened, believing that the conditions for hosting the Tour had been met. “Unfortunately, this virus is still present, and it is a new reality that we are still learning to cope and live with.”

Djokovic said he will remain in self-isolation for 14 days and also apologized to anyone who became infected as a result of the series. Organizers of the Adria Tour said the third stage of the event, scheduled to held next week in Bosnia, has been cancelled.

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Agencies
May 17,2020

Berlin, May 17: Top-flight football in Germany kicked off again on the weekend, becoming the first major sports league in the world to resume play, as parts of Europe took more tentative steps towards normality after the devastation unleashed by the coronavirus pandemic.

With the worldwide death toll past 310,000 and the global economy reeling from the vast damage caused by lockdowns, the reopenings in some of the hardest-hit countries provided much-needed relief from the pandemic.

The French returned to the beach and Italy announced a resumption of European tourism with outbreaks in Europe slowing, but the rising number of fatalities in the United States and Brazil were a grim reminder of the scale of the crisis, with more than 4.6 million infections reported globally.

With governments trying to reopen their economies while avoiding the second wave of infections that could necessitate more lockdowns, Germany's Bundesliga resumed its season on Saturday with games played in vacant, echoing stadiums.

League heavyweights Borussia Dortmund hosted rivals Schalke at the all-but-empty Signal Iduna Park -- which would usually be packed with more than 80,000 raucous fans.

"It's sad that matches are played in empty stadiums, but it's better than nothing," said 45-year-old Borussia Dortmund fan Marco Perz, beer in hand, as he prepared to watch the game on TV.

Dortmund's Erling Braut Haaland became the first player to score a goal after the two-month shutdown and celebrated by dancing alone -- away from his applauding teammates -- in keeping with the strict hygiene guidelines which allowed the league to resume.

The only noise was the cheering and clapping of players and coaches.

League champions Bayern Munich will play Union Berlin in the capital on Sunday, with the resumption in Germany seen as a test case as other top sports competitions try to find ways to resume play without increasing health risks.

"The whole world will be looking at Germany, to see how we get it done," said Bayern boss Hansi Flick.

Prime Minister Giuseppe Conte of Italy, however, said Saturday he needed more guarantees before the government can give the green light for the resumption of its top football league, which is struggling with logistical difficulties as clubs try to arrange training sessions and quarantine facilities.

With the Northern Hemisphere's summer approaching, authorities are moving to help tourism industries salvage something from the wreckage.

Italy, for a long stretch the world's worst-hit country, announced that European Union tourists would be allowed to visit from June 3 and a 14-day mandatory quarantine would be scrapped.

"We're facing a calculated risk in the knowledge that the contagion curve may rise again," Conte said during a televised address.

"We have to accept it otherwise we will never be able to start up again."

In France, the first weekend after the strictest measures were lifted saw many ventures out into the spring sunshine -- and hit the beach.

In the Riviera city of Nice, keen swimmers jumped into the surf at daybreak.

"We were impatient because we swim here all year round," said retiree Gilles, who declined to give his full name.

With the threat of a second wave of infections on their minds, authorities in many countries have asked people not to throng public spaces like beaches as they are made accessible again.

Officials in parts of England on Saturday warned people to stay away from newly reopened beauty spots and avoid overcrowding.

Germany also saw the latest in a growing wave of anti-lockdown protests in many parts of the world, with rallies in major cities bringing together conspiracy theorists, anti-vaccine activists and other extremists.

There were similar protests in France, Switzerland and Poland.

Since emerging in China late last year, the coronavirus has whipped up a catastrophic economic storm, which has left tens of millions unemployed in the United States and many are wondering when a recovery will be possible.

With more than 88,000 deaths and 1.47 million confirmed coronavirus cases, the United States is the worst-hit country on the planet, and the administration of President Donald Trump has faced intense criticism of the way it has handled the crisis.

Former president Barack Obama took a swipe at the response to the pandemic, telling graduates at a virtual commencement ceremony that many leaders today "aren't even pretending to be in charge" -- a remark widely regarded as a rare rebuke of his successor.

Trump is keen to reopen the US economy -- the world's largest -- despite warnings from experts that infections could flare up again if social distancing measures are eased too quickly.

Forty-eight of the 50 US states have now eased lockdown rules to some extent.

Much like Trump and his political allies, Brazil's far-right President Jair Bolsonaro is also keen to end lockdowns, which he claims have unnecessarily damaged the South American nation's economy over a disease he has dismissed as "a little flu".

But the virus has continued its deadly march in Brazil, where the death toll passed 15,000 on Saturday and it became the country with the fourth-largest coronavirus caseload with 230,000 infections.

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