CCD Shares Jump After Coffee Day Enterprises Sells Bangalore IT Park to Blackstone For Rs 2,700 Crore

Team Latestly

Bangalore, September 18: Cafe Coffe Day (CCD) parent company Coffee Day Enterprises said it reached a definitive agreement to sell its Global Village Technology Park in Bangalore to Blackstone and southern developer Salarpuria Sattva in a deal that could give the asset an enterprise value of Rs 2,700 crore. Following the news, shares of CCD were up 3 percent today trading at Rs 75.10 on Wednesday morning trades. CCD Founder VG Siddhartha Death: FSL Report Indicates Suicide by Cafe Coffee Day Founder, Says Police.

Also Read | CCD Founder VG Siddhartha Death: FSL Report Indicates Suicide by Cafe Coffee Day Founder, Says Police

According to a Business Standard report, the firm added that this transaction will substantially reduce the debt level of the group which was earlier disclosed on 17 August 2019 as Rs 4,970 crore. The transaction will involve an initial payment of Rs 2,000 crore by October 31 and the remaining Rs 700 crore to be paid after the regulatory approval.

Last month there were reports that in a bid to reduce debt, the promoters of Coffee Day Group are planning to restart talks with Coca-Cola to sell a chunk of their stake. According to an ET Retail report, the late founder of the Group, VG Siddhartha, had been in talks with the beverage giant as of June last week. The negotiations were reportedly halted because Coca-Cola wanted a controlling stake, while Siddhartha was looking at divesting only a minority stake. In July this year, CCD founder V G Siddhartha committed suicide troubled with the financial crisis.

Also Read | Gangaiah Hegde, Father of CCD Founder Late VG Siddhartha, Passes Away