VH Group, which recently acquired Blackburn Rovers, has categorically stated that Qubic Group has not done any ground work for its purchase of the English Premier League Club.
VH Group, which recently acquired Blackburn Rovers, has categorically stated that Qubic Group has not done any ground work for its purchase of the English Premier League Club.
A statement issued to this paper by Anuradha Desai, chairperson of the Pune-based company, said that the claims of Qubic Group’s Saurin Shah that he was backstabbed by VH Group are wrong.
Reacting to a report in these columns, Desai further said that Qubic Group had not carried out any due diligence on their behalf.
“They had not carried out any negotiations with Blackburn on our behalf. They had not even introduced us to the EPL club,” she categorically said.
“It’s preposterous to say that we backstabbed them or we borrowed their ideas about business models and plans. We had just one meeting with them and what models or plans can one get from them in one meeting and that too when even an introduction to Blackburn was not made. We have no need to borrow any business models or plans from anyone. We’re quite capable of generating our own ideas,” she asserted.
Explaining the course of events, she claimed that Qubic Group partners expected VH to fund 100 per cent and keep only 25 per cent shares and when that was not accepted, they demanded 25% sweat equity. She further said they came up with an illogical proposal after realising the tax implications of sweat equity.
“They realised that there would be tax implications in case of sweat shares and came up with a funny proposal that a joint venture should be formed with a share capital of Rs.1,00,000/- out of which, they would subscribe and pay for 24 per cent shares at par @ Rs.10/- per share. The remaining shares would be issued to VH Group at a premium — and the premium amount would be free reserves, and only the face value of shares i.e. Rs.74,000/- would be part of the share capital.
“This would have meant that the investment for acquisition of the club would be made by VH, and Qubic will own 24% of it — through the joint venture — at a nominal investment of Rs.24,000/- only,” she said.
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