FB Roundup: Mukesh Ambani, Lorenzo Bertelli, Bill Hwang
Ambani family considers stake in Lord’s 100
The family of Mukesh Ambani is in talks to take a stake in the team that plays at Lord’s Cricket Ground in London. It is to do so via its sports arm Indiawin Sports.
Indiawin Sports is best known as the owner of Mumbai Indians, the professional franchise cricket team based in Mumbai, Maharashtra.
Via his company Reliance Industries, Ambani bought the 10-year franchise rights to the Mumbai Indians for $111.9 million in 2008, making it the most expensive team to be sold in the league.
In 2022, the England and Wales Cricket Board (ECB) developed a new 100-ball cricket tournament with eight teams playing at venues that host international matches in England. It has given 51% stakes in these teams to the clubs that own those venues.
London Spirit, which plays at Lord’s Cricket Ground is currently in talks to sell its stake, IFR reports. The auction is being run by Raine Group.
Any sale is subject to approval by the ECB’s members.
The family also owns stakes in franchise Twenty20 cricket teams MI New York, MI Cape Town and MI Emirates.
With an estimated net worth of $113.7 billion as of March 2024, Mukesh Ambani is the richest person in Asia and the 11th richest in the world, according to Forbes magazine
Prada is open to acquisitions
After press rumours at the start of the year that Prada might be sold, the strategy of the Italian billionaire Patrizio Bertelli family, which owns the 111-year-old luxury brand, appears to be changing.
Lorenzo Bertelli, Prada’s head of social responsibility and heir of its billionaire controlling family, told Bloomberg last week, that he was open to the idea of acquisitions. “We have been and will always be open to considering opportunities,” he said.
Lorenzo has been an executive director of Prada since May 2021 and is tipped to take over the company.
Prada, which also owns the high fashion women's clothing and accessory brand Miu Miu and luxury footwear manufacturer Church & Co (Church’s) has remained steadfastly independent like Armani and Salvatore Ferragamo.
Prada is in a better position than most to consider acquisitions and the firm has consistently shaken off the difficulties that have swirled around the sector.
It floated a 20% stake in Hong Kong in 2011 and its shares have a five-year return of 166%.
Its first-quarter results this year have been impressive too. The company posted an 18% jump in sales to €1.1 billion ($1.2 billion) and a 16% rise in net revenues to €1.2 billion.
“Sharpness of positioning, creativity and communication will be critical this year; while the industry is experiencing new dynamics, we retain our ambition to deliver solid, sustainable and above-market growth,” said group chief executive Andrea Guerra.
Patrizio Bertelli’s net worth is estimated at $4.5 billion according to Forbes magazine.
Trial of Bill Hwang starts
The trial of billionaire Korean-born American investor and trader Bill Hwang has started in New York.
He is accused by several banks, including Credit Suisse and Nomura, of using highly leveraged total return swaps to hide his high and concentrated exposure to ViacomCBS, Baidu, Vipshop, Farfetch.
At the end of March 2021, the limited partnership family office that managed his personal assets defaulted on a number of margin calls.
At its peak, Archegos Capital Management managed $35 billion in assets.
Federal prosecutors, quoted in Morningstar, argue that his crime was to mislead lenders to manipulate prices in order to make himself extraordinarily rich. Legal experts have said that it is a case that may end up being difficult to prove as it isn't entirely clear that what Hwang did was illegal.
Hwang himself denies all charges.
He was originally arrested on federal charges of fraud and racketeering at the end of April 2022.
