Blackstone Proceeds to Acquire Coffee Day’s Tech Park

(Bloomberg) -- Blackstone Group Inc. has proceeded with the acquisition of Coffee Day Enterprises Ltd.’s technology park as it is set to pay the first tranche of 1.5 billion rupees ($21 million) as soon as Wednesday, people familiar with the matter said.

The fund will pay another 20 billion rupees in the next two weeks for Global Village Tech Park, said the people, who asked not to be identified as the information is private. The remainder, which is 5.5 billion rupees, will be paid within a year, the people said. The deal values the technology park at 27 billion rupees.

The embattled Coffee Day, which runs India’s largest coffee chain, has been trying to sell assets to repay its debt after the unexpected death of its founder V. G. Siddhartha last year. Though the company announced on Aug. 14 that it has entered into a non-binding agreement to sell the technology park in Bangalore to Blackstone, the deal got delayed after its creditor Yes Bank Ltd. didn’t issue the so called no-objection certificate for the transaction, Bloomberg News reported in December.

Coffee Day’s lenders, including Yes Bank, have cleared the deal recently, the people said. Tanglin Developments Ltd., the unit of Coffee Day that controls Global Village Tech Park, owes Yes Bank about 1 billion rupees, people familiar with the matter have said.

Representatives for Blackstone and Coffee Day declined to comment.

To contact the reporters on this story: Baiju Kalesh in Mumbai at bkalesh@bloomberg.net;Anto Antony in Mumbai at aantony1@bloomberg.net

To contact the editors responsible for this story: Fion Li at fli59@bloomberg.net, ;Arijit Ghosh at aghosh@bloomberg.net, Jeanette Rodrigues

©2020 Bloomberg L.P.