Private equity (PE) player TPG Capital is in talks to potentially acquire Coffee Day Global, reports The Economic Times. "The proposed transaction is expected to value the coffee chain between Rs 3,500 and Rs 4,000 crore. The transaction will not include its vending machine business," a source told the publication.
The company’s late founder VG Siddhartha was seeking a valuation of Rs 8,000-10,000 crore, the report said.
CDG, which runs the Cafe Coffee Day chain, is owned by listed entity Coffee Day Enterprises (CDE). The chain has about 1,750 outlets across the country.
Moneycontrol could not independently verify this report.
As of July 31, CDG has a total debt of Rs 1,097 crore. CDE recently sold Global Tech Village Tech Park to Blackstone Group for about Rs 2,600-3,000 crore to help clear its debt position.
The group’s coffee business is expected to close the year ended March 2020 with sales of about Rs 2,250 crore, a senior executive told the paper.
Coffee Day Group’s promoters have renewed discussions with beverage giant Coca-Cola over a possible stake sale, according to a media report. The company has termed the report 'factually inaccurate'.
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