India Cements Washes Hands Off CSK Franchise

Published: 15th July 2015 04:21 AM  |   Last Updated: 15th July 2015 04:34 AM   |  A+A-

CHENNAI:  Even as shares of India Cements plunged by 6.31% within half an hour of the Supreme Court-appointed Justice Lodha Committee suspending Chennai Super Kings (CSK), sources close to its managing director N Srinivasan said that there would be no comment from their side as the report was not connected either to the company or Srinivasan.

CSK Cricket Ltd (CSKCL), which holds the franchise now, is however considering all legal avenues, they added.

“There will be no comment as he (Srinivasan) holds the position that the report on suspending Chennai Super Kings is not about him or India Cements. The CSK franchise has been transferred to the newly formed CSK Cricket Ltd, which is a seperate company, and it is up to the company to take appropriate action,” said the source.

According to India Cements, CSK has not been on their balance sheets for two whole quarters ever since CSKCL was formed and the franchise transferred in February.

In February, the board approved the sale of complete shareholding in CSKCL, aggregating to 50,000 shares of Rs 10 each, to a Trust called India Cements Shareholder Trust (ICST). The franchise was transferred to CSKCL at a net asset value of Rs 7.83 crore.

The Trust, whose ownership would be proportionally transferred to every non-promoter shareholder of India Cements, is managed by  three independent trustees currently. The shares held by the promoters in CSK will be transferred to a different trust created for former India Cements cricketers.  The result, said company sources, was that CSKCL was a completely seperate company which had no connection to India Cements.

While India Cements has washed its metaphorical hands of the CSK franchise, CSKCL will look at all avenues to explore possibilities, including an appeal. “We are consulting our legal experts and will take a decision consequently,” said sources.

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