133rd Day Of Lockdown

Maharashtra45795629935616142 Tamil Nadu2682852087844349 Andhra Pradesh176333956251604 Karnataka145830692722704 Delhi1391561252264033 Uttar Pradesh100310572711817 West Bengal80984568841785 Telangana6894649675563 Gujarat65704485612529 Bihar6203140760349 Assam4816233429115 Rajasthan4667932832732 Haryana3779631226448 Odisha3768124483258 Madhya Pradesh3508225414912 Kerala279561629988 Jammu and Kashmir2239614856417 Punjab1901512491462 Jharkhand140705199129 Chhatisgarh10109761369 Uttarakhand8008484795 Goa7075511460 Tripura5520367528 Puducherry4147253758 Manipur301818147 Himachal Pradesh2879171013 Nagaland24056594 Arunachal Pradesh179011053 Chandigarh120671520 Meghalaya9173305 Sikkim7832971 Mizoram5022820
Business Companies 14 Aug 2019 Coffee Day Enterpris ...

Coffee Day Enterprises to sell its tech park to Blackstone for up to Rs 3,000 cr

PTI
Published Aug 14, 2019, 5:50 pm IST
Updated Aug 14, 2019, 5:50 pm IST
The transaction valuation is about Rs 2600-3000 cr and the company has entered into a non-binding letter of intent.
The executive committee will explore opportunities to deleverage the Coffee Day Group
 The executive committee will explore opportunities to deleverage the Coffee Day Group

New Delhi: Cafe chain operator Coffee Day Enterprises on Wednesday announced sale of its Global Village Tech Park in Bengaluru to Blackstone for up to Rs 3,000 crore to cut its debt.

The announcement comes weeks after Coffee Day Enterprises founder V G Siddhartha allegedly committed suicide. In a letter purportedly written by him, Siddhartha mentioned severe financial stress being faced by his group firms, among other issues.

 

"The Board of Directors of the company...discussed methods of deleveraging the group. Towards the objective of deleveraging the board discussed and approved the disinvestment of Global Village Tech Park in its subsidiary, Tanglin Developments Ltd, in favour of Blackstone," Coffee Day Enterprises said in a BSE filing.

"The transaction valuation is about Rs 2600-3000 crore and the company has entered into a non-binding letter of intent. The transaction closure is subject to completion of Blackstone's due diligence, documentation and receipt of requisite regulatory approvals, which is expected in the next 30- 45 days," the company added.

 

The board also provided in-principal approval for disinvestment in its stepdown subsidiary AlphaGrep Securities Pvt Ltd in favour of Illuminati Software Pvt Ltd for an approximate amount of Rs 28 crore.

"The above mentioned transactions will significantly help in deleveraging the Coffee Day Group, and ensure smooth operations while safeguarding the interests of all stakeholders, including investors, lenders, employees and customers," Coffee Day Enterprises said.

Coffee tycoon V G Siddhartha seemed to be under severe financial stress before his death, with his flagship cafe chain Coffee Day Enterprises Ltd's liabilities doubling to over Rs 5,200 crore and his unlisted ventures in the realty and hospitality sectors having similar levels of debt.

 

Siddhartha, whose body was recovered from a river near Mangaluru last month after he went missing, had mentioned "serious liquidity crunch" and "tremendous pressure" from lenders and an unnamed private equity investor.

Coffee Day Enterprises on July 31, 2019, named independent director S V Ranganath as the interim chairman of the company to replace its founder Siddhartha.

The company board, wherein Siddhartha's wife Malavika Hegde is also a director, put in place a working structure of the company. It also constituted an executive committee comprising Ranganath, COO Nitin Bagmane and CFO R Ram Mohan. The executive committee will explore opportunities to deleverage the Coffee Day Group, it had said.

 

...
Location: India, Delhi, New Delhi




ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT