Elephant Capital, the AIM-listed private equity fund with an Indian focus, is set to exit its investment in Global Cricket Ventures (GCV), a company that was a sub-licensee of World Sports Group. GCV is one of the companies sublicensed from WSG the online and mobile broadcast rights to the Indian Premier League (IPL).
Last year, the Board of Control for Cricket in India (BCCI) had decided to rescind its global media contracts with World Sports Group. Gaurav Burman, managing partner, Elephant Capital, is the son-in-law of tainted former IPL chairman Lalit Modi. Elephant Capital invested about $10 million in GVC.
Pramath Raj Sinha, chairman, Elephant Capital, said, “Global Cricket Ventures, one of our investee companies, was inevitably affected by the BCCI action. Consequently, the Board of Elephant Capital has decided to dispose of its investment in GCV and accordingly to adjust the valuation of this investment for the August 2010 statement of financial position.”
In March 2010, GCV received a notice from WSG that its licences in respect of the IPL had been terminated. In subsequent weeks, an investigation was launched by the BCCI and certain government agencies into all aspects of the IPL. As a result, in June 2010, the BCCI announced it would be rescinding agreements with WSG, covering the global media rights to the IPL. GCV’s licences were, therefore, among those affected by this action. BCCI informed GCV that it would no longer be honouring its arrangement with GCV to build, host and manage the CLT20 website.
“As a result of the above, Elephant Capital has decided to dispose of its investment in GCV and discussions are under way to exit its entire shareholding. Elephant Capital currently considers it appropriate to write down the value of its investment to GBP 1.9 million, which represents the Investment Manager’s best estimate of net assets of GCV attributable to Elephant Capital’s shareholding,” said the company statement.
During last year, Elephant Capital plc made investments in Amar Chitra Katha Private Limited, one of the children’s media companies, and ClinTec Luxembourg SA, a full service clinical research organisation.