A SUBSIDIARY of Diageo has pocketed £1.3bn from the sale of its Indian cricket team as the drinks giant divests assets to focus on its core business.
The FTSE 100 firm acquired Indian team Royal Challengers just over a decade ago as part of its acquisition of a majority stake in United Spirits, an Indian drinks business behind a number of popular local whisky, wine, vodka and brandy brands.
Diageo has quietly kept the club in its portfolio ever since - but new boss "Drastic" Dave Lewis has been on the look out to cut the fat from the business, including the disposal of non-core assets.
The club has been acquired by a consortium of investors including Aditya Birla Group, The Times of India Group, Bolt Ventures, and private equity giant Blackstone.
Last month Diageo slashed its dividend as the cost-cutting regime of new chief executive Dave Lewis begins to take hold, prompting a share price spook.
The board announced the "difficult" decision to cut its dividend to 20 cents to "accelerate the strengthening" of its balance sheet in its interim results, the first financial update since Sir Dave Lewis took charge.
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