Preity Zinta files restraining order against Punjab Kings co-owner to block sale of shares to another party - Reports
Punjab Kings (PBKS) co-owner Preity Zinta has taken legal action against one of the franchise's co-owners Mohit Burman with a restraining order from the state high court. Burman holds the largest franchise share with an overwhelming 48 percent in KPH Dream Cricket Private Limited, the organization through which Preity Zinta also has a shareholding.
According to a report by Cricbuzz, Burman is looking to sell 11.5 percent of his shares to an unknown party. While parting ways with shares is common in business, the issue is that it is being offered to a third party. There is an apparent internal pact where the stakeholders must offer their share to the existing partners before any potential third parties.
The other stakeholders in the franchise include Ness Wadia, who owns 23 percent, and the remainder is tied down with Karan Paul.
"I don't have any plans to sell my shares," Mohit Burman told Cricbuzz.
However, the case has been filed, with a hearing set for Tuesday, August 20. No comments regarding the ongoing dispute have been made by any of the other stakeholders so far.
"Preity Zinta said Burman holds approximately 48 per cent of the shareholding and is also on the board of directors. She has filed the petition under Section 9 of the Arbitration and Conciliation Act-1996 seeking interim measures and direction in view of the disputes and differences between her and respondent Mohit Burman," a report by The Tribune stated.
Furthermore, the option to sell the share is time-bound. As a result, after offering it to the existing partners, they can proceed with the third party if the stake remains unclaimed even after a particular timeframe.
The 11.5 percent stake of Punjab Kings (PBKS) comes out to ₹540 to 600 crore
The Indian Premier League (IPL) franchises' valuations have skyrocketed in recent years. The introduction of two more teams has only added more value to the league, and although the valuation of each franchise is different, it is certainly in the range between ₹5300 and ₹5800 crore, if not more.
If this particular valuation is considered, the 11.5 percent stake, which Burman is ready to cede, comes to between ₹540 and 600 crore.
PBKS are among the handful of sides yet to win the IPL title since its inception. Punjab are enduring a dreadful run, failing to progress to the playoffs for the past decade.