The high court of the state has issued a restraining order against Mohit Burman by Preity Zinta, co-owner of Punjab Kings (PBKS), who filed a restraining order against him. Burman has 48 percent of KPH Dream Cricket Private Limited, which makes him the largest shareholder in the franchise owned by Zinta.
Cricbuzz reported that Burman intends to sell 11.5 percent of his shares to an undisclosed person. However, though divesting from shares has been common in business, the problem here is that it is being offered to a stranger person. There exists an internal agreement that stakeholders ought to offer their stakes first amicably before approaching any potential third parties.
The other stakeholders in the franchise are Ness Wadia who owns 23 percent while Karan Paul holds the rest.
“I don’t have any plans to sell my shares,” Mohit Burman told Cricbuzz.
Nonetheless, the case has already been lodged; the hearing is scheduled for Tuesday, 20th of August. No statements have come out concerning the ongoing disagreement from any other involved parties.
“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.
Moreover, there is a time-limit for selling a share. So, if there is still no claim on the stake after a certain time, then they can go ahead and offer it to outsiders after it has been given to its present holders.
The 11.5 percent stake in Punjab Kings (PBKS) is valued between ₹540 crore and ₹600 crore
In recent years, the values of Indian Premier League (IPL) franchises have soared. The new expansion of two teams only enhanced league worth; in addition, even if the price for each of these franchises differs widely it generally ranges somewhere between ₹5300 crores to ₹5800 crores if not more.
Based on this particular estimate, the 11.5 percent share that Burman is willing to give away is valued at around ₹540-600 crores. Among the handful of teams that have not won an IPL title since its inception PBKS remains one such team. For over a decade now Punjab has been going through a pitiful phase failing to qualify for playoffs.
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