Chennai: Board of Control for Cricket in India (BCCI) president-in-exile N Srinivasan-led India Cements' board approved transfer of Indian Premier League (IPL) team Chennai Super Kings (CSK ) to a wholly-owned subsidiary Chennai Super Kings Cricket (CSKC) Ltd on Wednesday.
A decision to this effect was taken at a Board meeting of the company held here. “Pursuant to the decision of Board of Directors of India Cements Ltd, the company transferred the IPL franchise rights to its wholly-owned subsidiary CSKC Ltd," Srinivasan told reporters after the meeting.
He further said: "The Board considered a proposal for reorganisation of CSKC Ltd under which ownership of the franchise will be issued to the shareholders of India Cements Ltd, subject to necessary approvals."
Srinivasan, who has been barred by the Supreme Court from contesting any polls of the board till he gave up ownership of the IPL team, did not specify who would be at the helm of CSKC Ltd and details of its main functionaries.
"This is the first step in slowly getting into a fully cement focussed company," he said, declining to comment on how the new subsidiary would be capitalised.
He also refused to comment on anything related to Court orders or to BCCI on the issue.
Last week, the company had informed BSE that it would transfer its IPL team CSK to the new subsidiary.
Already the company has completed the required documentation for the transfer and its meeting was called to consider reorganisation proposals relating to the subsidiary, CSKC.
Earlier on September 26, 2014, the Board of Directors of the company had approved the proposal to demerge CSK into a wholly-owned subsidiary of the company, by transferring its net assets at cost.
It had stated that the effective date of transfer will be January 1, 2015.