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 which gives the asset an enterprise value of Rs 2,700 crore.
Shares of Coffee Day Enterprises rose 3.99% to Rs 75.65. The firm said after market hours yesterday, 17 September 2019, that following the board's approval, it executed the definitive agreements with entities belonging to Blackstone Group and the Salarpuria Sattva Group for investment in GV Techparks, a wholly owned subsidiary of Tanglin Development (TDL).TDL, a wholly-owned subsidiary of Coffee Day Enterprises, is engaged in setting up fully integrated information technology park (industrial park) and campuses for software development at Bangalore and Mangalore.
Global Village Tech Park was constructed and is owned by the Cafe Coffee Day under the brand name Tanglin. Global Village will first be demerged from TDL.
"The completion of the transaction is dependent on the transfer of Global Village TechPark asset from TDL to GV Techpark. The transaction is at an enterprise value of Rs 2,700 crore, subject to certain closing adjustments. The closing of the transaction is subject to completion of conditions precedent including receipt of regulatory approvals," the company said in a statement.
This transaction will substantially bring down the debt level of the group which was earlier disclosed on 17 August 2019 as Rs 4,970 crore, the firm added.
Coffee Day Enterprises' founder V G Siddhartha committed suicide in July 2019 following financial troubles.
On BSE, 41,000 shares were traded in Coffee Day Enterprises counter, compared to a 2-week average of 2.62 lakh shares. The stock hit an intraday high of Rs 76.35 and an intraday low of Rs 73.
It hit a 52-week high of Rs 325 on 21 September 2018 and a 52-week low of Rs 60.95 on 6 September 2019.
Coffee Day Enterprises' consolidated net profit fell 74.3% to Rs 8.92 crore on a 17% jump in net sales to Rs 1,322.20 crore in Q4 March 2019 compared with Q4 March 2018.
Coffee Day Enterprises sells coffee beans and provides hospitality services. The firm's segments include coffee and related business, leasing of commercial office space, hospitality services, financial services, integrated multimodal logistics and others.
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