Diageo plc (LSE:DGE) is considering options for its ownership of the Indian Premier League cricket franchise Royal Challengers Bengaluru, according to people familiar with the matter. The British distiller has been holding discussions with potential advisers as it weighs possibilities including a sale of part or all of the club, the people said. Diageo owns the team through its Indian unit, United Spirits Limited (NSEI:UNITDSPR), and may seek a valuation of as much as $2 billion, the people said.
No decision is final and they may decide against selling the team, the people said, asking not to be named as the details are private. A spokesperson for Diageo declined to comment. A representative for United Spirits didn?t respond to requests for comments outside normal business hours.
The discussions come at a time when India?s health ministry has been pushing to ban promotion of tobacco and alcohol brands in the IPL, and stop indirect promotion of other unhealthy goods by sports personalities.
