India Cements Limited transferred IPL team Chennai Super Kings franchise to CSKC Limited
The decision was taken by India Cements Vice-Chairman and Managing Director (MD) N Srinivasan led Board of Directors meeting held in Chennai, Tamil Nadu.
The India Cements Limited on 11 February 2015 transferred the Indian Premier League (IPL) team Chennai Super Kings Cricket (CSK) franchise to its new subsidiary Chennai Super Kings Cricket (CSKC) Limited.
The decision was taken by India Cements Vice-Chairman and Managing Director (MD) N Srinivasan led Board of Directors meeting held in Chennai, Tamil Nadu. With this, the company targets to get into a pure-play cement company.
Around 97000 shareholders of India Cements will be given free shares of Chennai Super Kings Cricket Ltd in proportion to the shares they currently hold in the company. The promoters together hold a 28.23 percent stake in the company.
This move will help shareholders of India Cements to exercise their choice to own only the cement business or the cricket franchise or both. With this decision, CSK will be first franchise team in IPL history to be owned by the shareholders of a company.
Earlier in September 2014, the Board of Directors of India Cements approved the proposal to demerge Chennai Super Kings (CSK) into a wholly-owned subsidiary of the company by transferring its net assets at cost.
Under the ownership of India Cements, CSK led by Mahendra Singh Dhoni had won IPL tournament twice in IPL Season 3 (2011) and in IPL Season 4 (2012).