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Coffee Day Enterprises executes definitive agreement with Blackstone Group for tech park sale at Rs 2700 crore

The transaction will substantially bring down the debt level of the group , which was earlier disclosed to be at Rs 4, 970 crore on August 17.

September 17, 2019 / 06:14 PM IST
 
 
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The definitive agreement between a subsidiary of Coffee Day Enterprises (CDEL),the Blackstone Group and the Salarpuria Sattva Group, for the purchase of its Global Village Tech Park, has been executed at an enterprise value of Rs 2700 crore, according to a release filed with the exchanges.

The release noted that the transaction is proposed to take place in two tranches. The first tranche will be worth Rs 2,000 crore, and is expected to be completed on or before October 31.  The second tranche is expected to be Rs 700 crore.

The release also noted that the aim of this transaction  was for CDEL to focus on its core business and reduce its debt. It earlier disclosed its total debt to be at Rs 4, 970 crore, as of August 17.

The sale of the tech park to Blackstone is expected to reduce the company's debt to Rs 1,000 crore, according to a release filed with the exchanges.

The details of the deal have been under speculation after CDEL, in an exchange notification on August 14, said that a non-binding letter of intent was signed with Blackstone. This was after the board of CDEL approved the divestment of the realty arm.

Moneycontrol News
first published: Sep 17, 2019 05:45 pm

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