Coffee Day Sells Global Village Tech Park To Blackstone, Salapuria Sattva
Coffee Day says the acquisition would take place at an enterprise value of around Rs 2,700 crore in two tranches.
Blackstone Group and Salapuria Sattva Group have agreed to acquire Coffee Day Enterprises Ltd.’s Global Village Tech Park in Bengaluru as India’s largest cafe chain operator looks to pare debt.
On Tuesday, Coffee Day informed the exchanges the acquisition would take place at an enterprise value of around Rs 2,700 crore in two tranches. The first tranche is expected to be transferred before Oct. 31, according to an exchange filing, while the deal would be subject to conditions, including regulatory approval.
The transaction comes within a month of Coffee Day Enterprises announcing the sale to deleverage its assets and improve liquidity. With this transaction, it expects to reduce debt by nearly 80 percent to around Rs 1,000 crore.
VG Siddhartha, the founder of the Coffee Day Group that runs the Cafe Coffee Day chain, was pulled out dead from the Netravati river near Mangaluru in Karnataka on July 31. In an unverified letter that surfaced soon after he went missing, Siddhartha talked about severe financial stress being faced by his group firms, among other issues.
Shares of Coffee Day Enterprises have risen 16 percent since the announcement of the debt reduction plan on Aug. 17, while the Nifty 500 Index declined 1.55 percent during the period.