- The holding company of Coffee Day Group founded by late V.G. Siddhartha, Coffee Dat Enterprises Ltd. (CDEL), on Friday closed the deal to sell the Global Village Technology Park based in Bengaluru to the US-based private equity giant Blackstone Group.
- CDEL owns Coffee Day Global Ltd (Coffee Business), Sical Logistics Ltd (integrated logistics), Tanglin Developments Ltd (realty), Way2Wealth (financial services), and Coffee Day Hotels and Resorts Ltd (hospitality) and has debt obligations of at least Rs. 7,653 crore as of 31st March.
The holding company of Coffee Day Group founded by late V.G. Siddhartha, Coffee Dat Enterprises Ltd. (CDEL), on Friday closed the deal to sell the Global Village Technology Park based in Bengaluru to the US-based private equity giant Blackstone Group.
The sale of the 90-acre tech park was finalized at Rs. 2,800 crore according to the people close to the deal.
CDEL will get the money in the next two weeks. Rs. 2,000 from the proceeds of the deal will be used to repay debts of CDEL and Rs. 800 crore will go into the books of CDEL to meet its working capital requirements.
CDEL owns Coffee Day Global Ltd (Coffee Business), Sical Logistics Ltd (integrated logistics), Tanglin Developments Ltd (realty), Way2Wealth (financial services), and Coffee Day Hotels and Resorts Ltd (hospitality) and has debt obligations of at least Rs. 7,653 crore as of 31st March.
The debt was diluted after Siddhartha and two other subsidiaries of CDEL sold their entire stake in Mindtree Ltd to Larsen and Toubro Ltd for Rs. 3,200 crore and used a part of the money to repay debt.
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The repayments between March and June-end too helped CDEL reduce loan obligations at a consolidated level. The asset sale helped CDEL to reduce its debt obligations from Rs. 4,400 crore to Rs. 2,400 crore which will be lowered more via the sale of some of CDEL’s other assets over the next two months.
A little over a week after the alleged suicide of Siddhartha, the CDEL board had decided to sell the technology park, which is owned by Tanglin Developments on 9th of August.
CDEL on 14th August had announced to sell the tech park to Blackstone Group for Rs. 2,600-3,000 crore. Following a board meeting on the same day, the company also gave approval of disinvestment in its subsidiary.
Recently, TPG, a private equity fund, was in primary talks for a possible acquisition of Coffee Day Global which runs Cafe Coffee Day across the country. Although the talk is at the very preliminary stage, this could greatly change the way the current coffee day outlets work.
