Latham, Macfarlanes advise as steel tycoon buys cricket team for $1.6bn
The Rajasthan Royals cricket franchise has been sold to India’s prominent Mittal family and pharmaceuticals tycoons Adar and Cyrus Poonawalla for $1.65 billion.
Latham & Watkins advised the buyers, and Macfarlanes acted for Royal Sports Group, the team’s holding company.
Macfarlanes and Latham & Watkins have scored roles on the $1.65 billion sale of prominent Indian Premier League (IPL) cricket team the Rajasthan Royals.
The team is part of Royals Sports Group and has been acquired by steel tycoon Lakshmi Mittal and his family and fellow businessman Adar Poonawalla.
The transaction also includes other teams owned by the holding company: Caribbean Premier League team Barbados Royals, and the Paarl Royals, who play in South Africa’s SA20 tournament.
The cricket franchise is now majority-owned by the Mittals, one of Asia’s richest families, who took an approximately 75% stake. Lakshmi Mittal was the UK’s richest man for many years before relocating to last year.
Adar Poonawalla, CEO of the world’s largest vaccine manufacturer, Serum Institute of India, also purchased around 20% of the franchise alongside his father Cyrus Poonawalla, who founded the biotech giant.
Lachlan Murdoch and RedBird Capital Partners, who both held minority stakes in the Rajasthan Royals franchise, will exit as part of the deal.
The battle for ownership
Expected to close in Q3 of this year, the transaction comes as somewhat of a curve ball after several deep-pocketed investors vied for a piece of the cricket heavyweight.
US businessman Kal Somani and a consortium including Walmart chief and NFL team owner Rob Walton and Detroit Lions owner Michael Hamp had agreed to a $1.635 billion deal in March after leading for most of the bidding process.
Advising
The Mittal family drafted in a Latham & Watkins team led by London corporate partners Farah O‘Brien, Nick Cline and Jon Fox. The wider team included tax partner Simon Skinner and entertainment, sports and media partner Rachael Astin.
Indian firm Trilegal also advised the Mittal family. Cyril Amarchand Mangaldas (CAM) advised Poonawalla.
Macfarlanes led on the seller side, advising Royals Sports Group with a team led by M&A partners Tom Rose and Richard Burrows. The wider team included competition partner Malcolm Walton and finance partner Kirstie Hutchinson.
Indian firms Equilex and AZB & Partners also advised the seller consortium.
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